Life is unpredictable. While you may not be able to control what happens in the future, life insurance gives you the tools to protect those you love after your passing. If you’ve been thinking of investing in a policy, you might have many questions. The guide below offers answers to some common ones to help you get started.

What to Know About Life Insurance

What does it offer?

Unlike policies that cover specific expenses, life insurance pays a lump sum to your beneficiaries when you pass away. These funds can be used for any purpose, such as settling your remaining debts, paying mortgages, and even permanently replacing your income.

Do I need this if my employer offers coverage?

Life insurance is a popular employment benefit, but most offered policies provide limited resources. For example, your employer’s policy may only replace your income for one or two years.

While this might work for single professionals, purchasing coverage from a private insurer may be beneficial if you have a family or want to provide for someone long after you’re gone.

When should I purchase a policy?

Many people assume that only older individuals need to worry about life insurance. However, unexpected accidents and illnesses can happen to anyone.

Rates are also based heavily on your age, so buying while you’re young and healthy could help you save money over the life of the policy.

How much coverage do I need?

The ideal coverage amount varies based on responsibilities and goals.

For instance, a single person with no children may want to get a policy that offers less funding than the primary breadwinner of a young family. Most agents recommend carrying at least enough coverage to pay for any debt you owe and funeral expenses.

Is life insurance expensive?

The cost of life insurance can very greatly depending on your age and health. Studies show that most Americans overestimate the cost of life insurance by 300%!! The key is to purchase a policy while you are still in good health to lock in those favorable rates. 

If you’re looking for life insurance, turn to Daniel Oliver Insurance Agency. They have helped people throughout Minnesota protect what matters most since 1983. As Farmers® Insurance agents, they proudly offer policies from one of the nation’s leading carriers, with options that can be tailored to your needs. Visit their website to explore their offerings, follow their Facebook page for news, or call (952) 925-4454 to request a quote.