If you passed on today in Alliance, Austintown, Boardman, Canfield, Poland, Salem, OH, and the surrounding areas, how would your family be able to take care of the financial needs that they have? This is the basis for the need for life insurance, and our team at the Insurance Center of Salem can help you to determine just how much coverage you should have. There are many reasons why someone would want to have life insurance, from providing a way to generate income annually to having the resources to pay for final expenses, and more. Life insurance is a cost effective method to provide for your loved ones after you are gone, and the amount of coverage will be dependent on what you are wanting the money for. Contact us today to schedule a time to discuss how much life insurance you may need.
How Much Life Insurance Do You Need
This is the main question that we help all of our clients with when they are looking to purchase life insurance. The amount will vary depending on what you want to use it for. For some, they want the life insurance to be an income replacement. In this case, the general rule of thumb to get started is to have 10 times your current income as the coverage level. The idea is that this amount will be invested and then the proceeds annually will cover the missing income.
In other cases, life insurance is going to be used to pay for expenses for the deceased. This can include funeral expenses, but may also include money to pay off a property, pay off other debts, and more. In other cases, life insurance is used as a way to pay for estate taxes so that heirs will not have to liquidate other assets.
Types of Life Insurance
Term life insurance is the most straight forward option for life insurance, as you have a specific coverage amount that lasts for 10, 15, 20, or more years. When the term period is up, the life insurance goes away. Other options include permanent life insurance which continues to be in force until the death of the covered person, as well as final expense insurance which is designed to cover basic funeral costs and not much else.
Many people find that funeral expenses are more than they imagined in Alliance, Austintown, Boardman, Canfield, Poland, Salem, OH, and the surrounding areas, and having a life insurance policy can make those costs much more manageable, or be covered entirely. Speaking with our team at the Insurance Center of Salem will provide you with all of the details that you need to make the right choice for your needs. Contact us today to learn more about having life insurance in place for your family.