As you shop around for life insurance, you have probably come up with a list of questions because of its complex nature.
Life insurance is a legal contract between a policyholder and insurer. A life insurance policy guarantees that when the policyholder dies, their named beneficiaries will receive a sum of money that is paid by the insurer in exchange for premiums paid by the policyholder throughout their life. All of this does not have to be overwhelming or confusing. Here are a few commonly asked questions about life insurance.
Continue reading to get your answers about life insurance below.
Do I Need Life Insurance?
Yes, everybody should have life insurance. If you are married and your family relies on you for financial support, life insurance can help cover expenses after your death. Even if you do not provide additional income for your family, such as a stay-at-home parent, your death could mean needing extra child or home care, which can cost thousands and thousands of dollars each year. Additionally, this money can go towards college tuition and living expenses after they’ve left your home.
Whether you have kids or not, life insurance can be beneficial. Life insurance does not just help cover home and child expenses. It can be used to pay down auto loans, mortgages, credit cards, hospital bills, and more. The benefits of life insurance give your family (or your beneficiaries) a comfortable standard of living after you have passed and provides money for their necessities.
Do I Need Life Insurance Even if I’m Young or Single?
Yes, as previously mentioned, even young families and single individuals can benefit from life insurance. Every person should have a good life insurance policy set in place.
How Much Life Insurance Do I Need?
Each person should have enough life insurance to cover costs of outstanding debts, end-of-life costs (such as hospital bills and funeral costs), and future everyday expenses. Many professionals suggest you have at least ten times your annual income in coverage.
Can I Get Life Insurance Without an Exam?
There are life insurance policies available that do not require a medical exam. However, many policies require health exams since your medical history and current health status are major determining factors in what health classification you receive, which determines your premiums.
What is the Difference Between Term and Permanent Life Insurance?
Term life insurance offers basic coverage for a certain amount of time, while permanent life insurance lasts your entire life and often is accompanied by an investment component.
Contact Bear River Mutual Insurance
Life insurance helps ease the burden of unexpected tragedy and loss.
If you have more questions about life insurance and other types of insurance policies that were not covered today, contact Bear River Mutual Insurance. Our knowledgeable professionals can help you find the best rates and protection and give you and your loved ones the peace of mind you deserve. We are dedicated to finding the perfect balance of value and security for you and your family. Request a quote and contact us today. We serve Orem, Provo, Salt Lake City, and neighboring Utah cities.