Why does someone need life insurance? Understanding the importance of life insurance is the first step in purchasing a policy. Life insurance is designed to provide financial support to your family in the event of your death. The benefits can help pay for mortgages, a college education, estate planning and more. If someone else depends on your income, you should strongly consider purchasing a life insurance policy. However, even if these risks don't seem to apply to you now, you might still consider a life insurance policy, as the younger you are the less expensive a life insurance policy is.
2. Research the Types of Life Insurance.
There are two basic types of life insurance: term life and whole life. Term life insurance policies provide a more affordable option with an expiration date. For example, you could purchase a term life insurance policy that lasts until your children have graduated high school and are making a living of their own. When they are no longer dependent on your income, the need for a life insurance policy decreases. A whole life insurance policy on the other hand lasts from the time you purchase the policy until your death. Talk to your independent insurance agent at the Lake of the Ozarks to discuss your specific needs and determine which policy is best for you.
The amount of life insurance needed is dependent upon you, your family situation and your financial situation. There are a variety of online calculators that can be used to help determine a value for your life insurance coverage. For a rough estimate, you can simply take your annual income and multiply it by 8. However, a more detailed estimate would need to be calculated with the monthly expenses your family would incur after your death. Your insurance agent can also help you with this step. While calculators are great for coming up with an estimation, there are other things to consider that those calculated numbers don't include.
If you're thinking about purchasing a life insurance policy, give Insure the Lake a call at 573-348-2794. As your local Osage Beach insurance agent, I'll be able to provide you personal and professional service. We're here for all your insurance needs, from life and health to auto and home.
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About the Author: Steve is a double back-flip insurance ninja. He was named Young Insurance Agent of the Year by the Missouri Association of Insurance Agents in 2010 and is a Certified Insurance Counselor. When he is not helping customers, he enjoys community service, Latin dancing with his beautiful wife and going on adventures with his two awesome sons.
Steve Naught, CIC
3736 Osage Beach Parkway
Osage Beach, MO 65065
Next to Golden Coral
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