Life insurance is a crucial policy that many people invest in to cover expenses after they pass away. From funeral costs to increasing medical bills, the funds from this policy can help family members cover expenses without placing a financial burden on their shoulders. If you’re unsure about the details of this policy, consult the guide below for more information.

What Is Life Insurance & What Does It Cover?

This policy pays your beneficiaries when you pass away. It’s not taxable and can be used however you see fit, whether that means paying off a mortgage, buying groceries, or paying a child’s college tuition. This policy is a way to supplement a household income if you pass away.

For this reason, many professionals recommend investing in a policy that covers at least 10-15 times your yearly income. For instance, if you make $50,000 a year, you should purchase a policy worth $500,000 to $750,000 to protect your family’s quality of life for at least 10-15 years. 

How Does Life Insurance Work? 

The process starts with a simple application. It’s easier to work with an insurance agent, since they can answer all your questions and help you select the best policy for your situation. In some cases, an underwriter may contact you to clarify a few sections of the policy.

Next, a medical professional will record your height, weight, blood pressure, and other basic medical facts about you and anyone else who is being covered. Those exams are then reviewed by an attending physician who works for the insurance company, and then your policy is sent to underwriting.

When your policy is approved, and you pay your first premium, you’re covered. Keep in mind that you can change your beneficiaries at any time. 

If you need a life insurance policy, Dewey Beckner: Allstate Insurance in High Point, NC, will help you select the best option for you and your family. Since forming his business more than 20 years ago, this trusted agent has helped families find the right policies for their budget, including insurances for motorcycles, homes, cars, and life policies. To learn more about how he can help, visit his website or call (336) 884-5636.