What Life Insurance Coverage Amount Should I Get?
Life insurance coverage amounts can range from thousands to millions of dollars, helping your loved ones remain financially stable in the event of your death. Consider your number of financial dependents you have and the level of your current income when calculating how much life insurance coverage to purchase.
Life Insurance for Beginners
If you’ve never read about life insurance, this is a good place to start. To begin with, life insurance is an agreement between you and an insurance company. In this contract, you agree to pay for an insurance policy. You typically pay in monthly installments, called "premiums." In the event of your death, your insurance company will pay certain monetary benefits to your beneficiaries.
In particular, life insurance may be important for those whose loved ones depend on them financially. The amount of coverage you buy can directly affect how your beneficiaries afford expenses such as:
- College tuition
- An unpaid mortgage
- Personal debt
- Day-to-day living expenses
Family members don’t want to leave loved ones with impossible financial burdens, which is why life insurance provides key security.
What Kind of Life Insurance Policy Is Right for You?
The best life insurance plan option for you will likely depend on your unique circumstances. Do you own a business? Are you retired? Do you need coverage for only a small amount of time? Do you have any ongoing health issues?
This is an advertisement for life insurance.
Applications for life insurance may be subject to acceptance by insurer. Issuance of the policy may depend upon answers to health questions. Rates and coverage amounts depend upon the carrier selected. Your policy may be subject to underwriting approval. You will receive only the benefit amount in the policy issued.