Shopping for life insurance coverage can be overwhelming. Many people do not understand what all is involved when it comes to life insurance. Our agents at Elite Insurance Solutions want our clients to know the facts about life insurance, so we would like to answer some of the most frequently asked questions on this topic.
Do I need life insurance?
If you have dependents, you need a life insurance policy to help your family and your business if you were to pass away. However, not everyone needs life insurance. According to Bank Rate, this group includes people with grown children who live independently and single elderly people.
How much life insurance do I need?
Typically, the amount of your life insurance policy should be equal to seven to ten times your annual salary, but there is a possibility that you could need more or not need that much. The agents at Elite Insurance Solutions can help you figure out the amount of coverage you need.
What is term life insurance?
To ensure you have the best protection while your children are young, term life insurance provides coverage ranging from five to 30 years. With budget-friendly annual premiums, these policies are ideal for many families. Having coverage to last until your youngest child completes college can give you peace of mind. Some term life insurance policies can even be converted to permanent insurance if desired.
What is permanent life insurance?
Also known as whole or universal, permanent life insurance policies never expire so the policies eventually do pay out. Additionally, a savings or an investment component is typically included and can appreciate in value over time. The downside of this type of life insurance is the annual premiums can be quite costly.
Do I need to add disability coverage to my life insurance policy?
To be sure you have some income in case of an illness or injury from preventing you from working, disability coverage can be added to your policy if you are not satisfied with the disability benefit at your job. Not every employer offers disability coverage, and many of those that do only cover half of your salary. Our agents can help you decide if you need to add a disability rider to your life insurance policy.
Have more questions about life insurance? Contact Elite Insurance Solutions to find out more about the facts on these policies.