Life insurance pays out a death benefit when a policyholder passes away, providing financial stability for survivors. It helps them maintain their current lifestyle even after the loss of the departed and their income. Many people have questions about how this coverage works. Below are some of the most common.

Frequently Asked Questions About Life Insurance

Do I need life insurance if I don't have children?

Life insurance relieves the financial burden a death places on any of their survivors. For instance, if your spouse or parent has co-signed a student or mortgage loan, they will become responsible for repayment if you are not around to do so. Life insurance can also relieve your survivors of the burden of your funeral and burial expenses, which often cost thousands of dollars.

What is term life insurance?

Term life is a temporary policy that lasts for only a set term of years. It offers basic protection at a low price. It does not require a medical screening, and it pays out a death benefit if the policyholder dies while the policy is in effect. It is ideal for people who want affordable coverage for a certain period—such as until their children are grown, or their spouse finishes their education.

What is whole life insurance?

Whole life lasts until the policyholder dies. Because the payout is guaranteed unless you drop the policy or stop making payments, it is more expensive, and you must pass a health screen. Whole life has an investment component, and part of your premium accumulates as wealth you can withdraw. It also often features additional disability coverage.

I have life insurance through work. Do I need more?

Employer-provided life coverage often only provides a benefit of one or two years’ salary. This is useful, but it may not be enough for your financial goals. For instance, if you want a benefit that pays off your mortgage, pays for your kids' college, or provides lifelong security for your spouse, you may need to buy an additional policy.

For expert guidance choosing a life insurance policy to protect your loved ones, contact Farmers Insurance® - Andrew Chao in St. Louis, MO. They are family-owned and operated and have been serving St. Louis County since 2015. They also specialize in home, renters, business, liability, and auto insurance. Message them online through their website or call (314) 300-7690 to request a life insurance quote.