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Understanding the basics of life insurance can be a challenge for many people seeking to protect their loved ones. When it comes time to purchase a policy, it’s important to feel comfortable asking any questions you have so you can make an informed decision. The general insurance team at Lighthouse Agency, located in Fairfield, OH, answers some frequently asked questions about life insurance policies.

4 FAQs About Life Insurance

Who Needs Life Insurance?

Although many people believe they don’t need life insurance until they have children, it may make more sense to purchase a policy beforehand depending on your situation. Anyone with loved ones who depend on them for financial support should purchase a plan. Stay-at-home parents should also have this type of protection because it would cover the cost of paying for child care, transportation, and other services they provide if they pass away.

Why Is Life Insurance Important?

life-insuranceLife insurance policies financially protect your family in case you pass away unexpectedly. Your death could leave your family with funeral expenses, debts, and education costs to cover, creating an enormous financial burden. Life insurance gives your loved ones the help they need to stay financially afloat.

How Much Life Insurance Do I Need?

You can determine how much life insurance you need by examining your current financial situation and determining how much money your loved ones may need in the future. A good strategy to follow is to calculate the amount of coverage you need for your final expenses, mortgages and other debts, and education expenses and include your family’s financial needs going forward. You can use a life insurance calculator to get an estimate of how much coverage you should purchase.

What Type of Policy Should I Buy?

The type of coverage that is right for you depends on your circumstances and your financial goals. Generally, term life insurance offers inexpensive coverage for people on a limited budget who may only need temporary coverage. Permanent insurance is a good option if you want protection that lasts your entire lifetime. Your insurance agent can help you decide which type of policy is best for you.

The general insurance agents at Lighthouse Agency offer personalized home, auto, and life insurance policies to affordably protect you and your loved ones. Give them a call at (513) 860-9100. You can also visit them online to request a free insurance quote.

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