Before you can get the life insurance coverage you need, you need to understand why you need it. While there are many reasons to buy life insurance, the most common reasons include:
Life insurance for final expenses is worth considering—after all, the National Funeral Directors Association reports that the median price of a funeral with a casket is more than $7,000. Funeral directors say families without enough funds are forced to cut back on the service or ask friends and family for donations. A modest term life insurance policy can unburden your loved ones by taking care of these expenses.
How much life insurance you need is based on two factors: your salary and the number of years until you retire. An insurance agent will also account for any other factors such as Social Security benefits, your partner’s income and your savings. Always aim to buy the amount you really need—but also remember that something is better than nothing when it comes to life insurance coverage.
Life insurance can pay off an outstanding mortgage so your family can enjoy the home they love without the burden of outstanding payments.
These are the three most common reasons people purchase life insurance. Yet there are many other reasons for buying life insurance, such as building or leaving an inheritance, saving for retirement, protecting student loan co-signers and more.
Life Insurance=Love Insurance
February is Insure Your Love month and the campaign is coordinated each year by Life Happens. Make sure to connect with your ERIE Agentto insure your love with life insurance.
Life Happens is a nonprofit organization dedicated to helping consumers take personal financial responsibility through the ownership of life insurance and related products. Life Happens Pro furthers its mission of educating the public by making its resources customizable and putting them directly into the hands of agents.