When it comes to life insurance, there are a lot of things that go into the decision-making process.
Do you need life insurance? What type of life insurance is best for you and your family? How much should you buy? These are all important questions to ask, and they can be tough to answer on your own.
The Basics of Life Insurance
We've put together this guide on life insurance basics - so that you can arm yourself with the knowledge you need to make an informed decision.
Understanding Term Life Insurance
One of the most important life insurance basics to understand is the concept of a "term life insurance policy." A term life insurance policy is a type of life insurance that provides coverage for a set period - usually between one and 30 years. If you die during the term of your policy, your beneficiaries will receive a death benefit. If you don't die during the term, the policy simply expires and you (or your beneficiaries) don't receive anything.
One of the biggest benefits of a term life insurance policy is that it is relatively inexpensive - especially when compared to whole life insurance. This makes it a good choice for people who are looking for life insurance coverage but don't have a lot of money to spend.
How much Life Insurance You Need
When it comes to deciding how much life insurance you need, there are a few different factors to consider. First, you'll need to think about your current financial situation. How much debt do you have? Do you have any dependents? What would happen to your family if you died tomorrow?
Future Financial Goals
You'll also need to think about your future financial goals. Do you want to make sure your family is taken care of if you die? Do you want to leave money behind for your children's education? Do you want to make sure your spouse can retire comfortably?
Life Insurance Rule of Thumb
Once you've considered all of these factors, you can start to get a sense for how much life insurance you need. A good rule of thumb is to purchase a life insurance policy that is worth five to ten times your annual salary.
However, this is just a general guideline - your specific needs may be different.
Request a Quote from EGGRS
If you're not sure how to get started, we can help. We offer free life insurance quotes and comparisons, so you can find the best policy for your needs.