Life insurance is one of the most important policies you can obtain, yet many people—particularly young adults—do not have this coverage. Understanding how life insurance can benefit your family illustrates why everyone should carry some level of coverage. Here is what you should know.

Life Insurance FAQ

What is life insurance for?

Life insurance provides financial compensation for your named beneficiaries if you pass away during the length of the policy. This “death benefit” can help make up for the income you would have provided, allowing your family to continue paying for the mortgage, college, or basic day-to-day needs.

Who can be a beneficiary?

Most policyholders name their spouse as the primary beneficiary. You can also name children or other relatives as beneficiaries if you designate how the benefits will be divided. You could even name a business or friend as a beneficiary if desired.

How much coverage do I need?

When determining the amount for the death benefit, it may be helpful to calculate your family’s future expenses, as well as your current contributions to the family, such as income or home maintenance. Consider your family’s total debts, and future planned expenses, like education for your children. Performing this needs analysis will give you a general estimate of how much money your family would need without you.

When should I update my coverage?

As your life situation changes, you may want to adjust how much coverage you have under your policy. Potential reasons to reevaluate your policy include getting married or divorced, having children, or buying a home. Make sure your coverage reflects the future needs of your beneficiaries.

Whether you need life insurance, auto insurance, or other coverage, you can count on Area Wide Insurance Agency in Naples, TX. With over 35 years of industry experience, their local insurance agents will help you get coverage tailored to your specific needs. To learn more about their insurance options or to request a free quote, visit them online or call (903) 897-5651.