Shee Insure, Llc

The primary reason to own life insurance is so that your beneficiary(ies) can receive a monetary payout — called the “death benefit” — if you pass away while you are covered under the policy. How much life insurance coverage you purchase is up to you. You can purchase an amount of coverage to correspond with what you’d like the death benefit to be used for — to pay for your final expenses, make up for the loss of your income so your family can cover their living expenses, finance care for a dependent with special needs, pay off debts or pay for your kids’ college tuition.

A practical reason to purchase life insurance while you’re young is because it is usually less expensive when you are young and healthy. Life insurance will only become more expensive as you age, so it may not pay to wait.

There may be good reasons for both spouses to have life insurance coverage. If your household is being supported by two salaries, the death of one spouse may cause financial hardship for the other, adding to the emotional pain. If you have a family, this financial stress can seem even more overwhelming. If your spouse is not employed now, they may need to start working if you die. And they will probably encounter new expenses as they learn to manage as a single parent — such as child care and household maintenance. Life insurance can provide immediate stability in the short run, and make things like paying for kids’ college education possible in the long run.

While the amount of life insurance you need depends on many factors, chances are very good that you need more than the amount of coverage you may receive automatically through your employer, which is often equal to your annual salary. If you are young and without dependents, coverage equal to one year’s salary may be enough to cover your funeral costs and some of your debts. However, if you’re middle-aged with a family that depends on your income to maintain their lifestyle, you’ll likely need much more coverage.

Sure! You can have multiple policies from multiple sources. For example, although you may automatically receive life insurance coverage from your employer, you may decide you need more coverage. In that case, you may choose to enroll for more coverage through your employer’s plan and pay the premiums through payroll deduction. Or you can choose to purchase a policy through your bank, credit union, financial professional or insurance agent. In the event of your death, both policies would then pay a death benefit to your beneficiaries.