If you’re just finding your footing in a career field or starting a family, thinking about supporting your family in the case of a severe accident or fatal illness may not be a present thought. However, even for younger generations, life insurance is a necessity and can provide peace of mind. If you’re not familiar with these policies and what they can do for your loved ones, consider these frequently asked questions.

4 FAQ About Life Insurance

Do I need life insurance?

Just because you’re under 40 doesn’t mean you should postpone securing a life insurance policy. You could still contract a life-threatening illness or get into a serious accident. Plus, younger applicants are considered healthier, so insurance providers won’t consider you a liability when suggesting a policy. 

What does it cover?

When you pass away, your life insurance policy will help your dependents survive. Since you wouldn’t contribute to household expenses, they can use the money to replace your income to buy groceries, pay bills, and take care of other necessities. The money can also take care of funeral expenses and outstanding debts.

What’s the difference between term & permanent?

Term life insurance offers coverage for a specific period, such as 10 or 30 years. Throughout the term, policyholders pay premiums and are promised coverage, but when it ends, so does the policy. Permanent life insurance covers you for life, no matter how many years you live. You’re also able to borrow money from the plan while living, or cancel it and keep the funds.

How much do I need?

While it’s difficult to plan to the exact amount, you can estimate the funds your family would need to get back on their feet. When doing so, tally up your income, savings accounts, insurance, and other benefits. Also, consider the value of the services you provide in your household—such as childcare or lawn work—and then subtract the money you spend solely on yourself.

If you’re ready to purchase a life insurance policy, reach out to Farmers Insurance Group. Our agents represent one of the country’s top carriers, providing everything from business and homeowners insurance policies to health and life insurance plans. Wherever you are in life, we’ll ensure the most valued parts are protected. To receive a free quote, visit the website, and call (417) 926-7900 to speak with a friendly representative.