The first question many people ask about life insurance is, “Do I really need it?” Because each person’s circumstances are unique, the answer will vary. If you’ve been thinking about securing coverage, here are several questions to ask yourself or an insurance agent first.

A Guide to Life Insurance

1. Do I need it?

If you’re married or have children, a reliable life insurance policy will provide financial protection for them should something happen to you. Most plans offer some form of death benefit for beneficiaries that can help supplement loss of income, pay for a child’s college education, or resolve debts.

2. How much should I get?

The amount of coverage depends on a person’s financial situation. Some insurance agents use a formula that multiplies a person’s annual income by 10 as the baseline for the policy. Other agents take a thorough look at income, assets, age and other factors to help calculate the amount. The key here is to secure a figure that adequately meets your family's needs and is affordable.

3. What type of policy should I get?

Term life insurance policies are typically available in increments of 10, 15, 20, or more years. The policyholder pays the premiums for the term’s time frame since rates are locked in for that term. Should something happen to them within that term, the death benefits are distributed to their designated beneficiaries subject to any waiting periods of the policy. Term policies are generally cheaper than permanent policies, which are in place if the premium payments are made depending on contract to age 100 or 120 of the policyholder. One of the critical differences with permanent coverage is if the policy has gained actual cash value owners can request a loan or make withdrawals after a certain amount of time has passed.

Since 1948, Comaltex Insurance Agency in New Braunfels, TX has helped families by providing professional insurance guidance in a no-pressure environment. The team of experienced agents understands that no two clients are alike and will suggest customized coverage options. If you’ve been thinking about securing a policy, call (830) 625-7511 to schedule a complimentary consultation. Visit the website to request a free life insurance quote and learn about choices to protect you and your loved ones.