by Brooke Jarchow
Life insurance can be considered an important risk management tool for families. It can prepare you for the uncertain future and ensure your family is left without financial burden. However, due to its complexity, people are often confused by life insurance, which may even lead them to avoid securing a policy.
While talking about your uncertain future may be uncomfortable, preparing with life insurance now could save your family from facing severe financial difficulty. Below, we explain life insurance and explain why you might consider a life insurance policy.
What is life insurance?
Life insurance policies are generally designed to protect the dependents of an insured individual should they pass away. Generally, life insurance helps guarantee that the policy holder’s dependents (or beneficiaries) will receive a certain amount of money should the policy holder pass away. Beneficiaries can use the money they receive to cover funeral costs, mortgage payments, college tuition and other expenses.
Who should consider a life insurance policy?
Do you have family members who rely on your financial support? If your spouse, children, or other dependents may not be able to provide for themselves if you were gone, you might want to consider a life insurance policy. A general rule of thumb is to set up a policy that would provide your beneficiaries with 10-15 years of financial coverage, but the best way to figure out the exact amount to have is to talk to a life insurance agent.
Are you ready to get started or do you have questions? Call GoHealth to talk to an agent: (888) 322-7557.