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What to Know About Life Insurance

life insurance | Freeman Insurance Solutions

Understanding life insurance can feel overwhelming. However, it is important to know the basics before you commit to a plan. That’s why we want to share the basics of life insurance, so you can understand what you need to without getting lost in all the terms and in-depth information.

Do I Need Life Insurance?

Life insurance shelters your family and friends from financial distress in case of an untimely death. It helps you plan for your family’s financial needs. It is a smart investment considering the strenuous situations that follow untimely deaths. Therefore, my beneficiaries will benefit from the financial reprieve.

How Does Life Insurance Work?

Life insurance is a contract between you and your insurer. You pay premiums to the company, and in exchange, they pay a death benefit to the beneficiaries you select. Your beneficiaries can claim the sum and use it however they see fit. Often the needs include paying for school fees, mortgage, and child care.

What Type of Life Insurance is Best?

Insurance companies typically offer two types of life insurance; term coverage and whole life coverage. While term coverage offers protection for a limited period, whole life coverage insurance provides you with long-term protection. Both coverages offer the same benefits. However, with whole life insurance, the premiums may be higher compared to the premiums you would pay for term coverage.

How Much Coverage Do I Need?

Your coverage will depend on your salary, and the years you have left until retirement. You will need to multiply the number of years left in your career by your annual income to get the coverage. Therefore, if you have ten years left, and your salary is $20,000; you will need about $200,000 in life insurance.

How Much Does Life Insurance Cost?

Life insurance rates vary greatly depending on the insurers, policy types, and applicants. But, the average cost per month in the United States is about $27.

Learn More About Protecting You and Your Family with Life Insurance

Apart from the cost and coverage, there is more to life insurance. That’s why we recommend you discover more in the hands of a professional. Get in touch with Freeman Insurance and learn more about life insurance and our other products and services today.

If you’re looking to apply for life insurance (with no medical exams or blood tests) by just answering a few health questions online, click here to get started!

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