You’ve maybe been told that life insurance is something important. We’ve said it ourselves. Unless you are single, have no dependents, and no debt with co-signers attached to it, life insurance is a very good thing to have. And it’s pretty affordable.

So let’s say you’re ready to get it. There’s just one problem.

You don’t really know what it needs to cover or how it works.

That’s where we’re here to help.

The Types of Life Insurance

There are generally two types of life insurance: term life insurance and whole life insurance.

As you can tell from the name, term life insurance covers a set time period or “term”. Once you reach the end of the term, the insurance expires. Whole life insurance, on the other hand, covers you until the day you die.

The best option depends on how long you need insurance protection for. This can be discussed further with an insurance professional.

What Does Life Insurance Cover?

Life insurance can cover a variety of expenses, as well as lost income when you die. However, life insurance doesn’t always cover all types of death. For example, suicide, death from pre-existing conditions, or being killed in action aren’t covered by some policies.

It’s important to understand what types of death your life insurance does (and does not) cover.

Now, assuming you die from covered circumstances, your life insurance goes into effect. The specifics of what it covers depends on the plan you select. For example, it may just cover the cost of current debts and funeral expenses.

Or, if your family relies on your income, it may act as a substitute for your wages for a set period of time.

Some life insurance plans can even feature add-on policies (called riders) that can provide pre-death coverage in certain situations. For example, if you become permanently disabled or become terminally ill.

How Much Insurance Do You Need?

The amount of life insurance needed largely varies from person to person. Many factors are considered when determining the size of a policy. This may include how much money you make, how much you have in debt, how many people depend on you, how long you need coverage for, and what additional clauses you may need.

The best way to determine your life insurance needs and find a plan that fits your budget is to talk to a professional insurance broker. At Link-Hellmuth, we provide quality life insurance to Springfield, OH residents and beyond.

Contact us today!