What is Life Insurance?
The best way to answer that is for you to think about who depends on you and for what. Your family may count on you for such things as house payments, education expenses and a certain lifestyle. The right amount of life insurance (it might be term or whole life) can help guarantee all these things for your family in the event of your untimely death.
It can be used to:
- Pay final expenses and any debts you may have
- Provide an income for your family
- Ensure your family has the resources to maintain a comfortable standard of living
- Leave a legacy to your favorite charity
While you are still living, some life insurance policies can:
- Build a tax-advantaged savings fund which you can draw upon as needed for personal or business opportunities
- Be used to supplement your retirement income
How much Life Insurance do you need?
In other words, how much coverage will it take to meet the needs of your family in the event of your untimely death? You need to assess several factors regarding your family situation (possible mortgage loan, education plans and income replacement to name a few).