Life Insurance FAQs
Top Asked Life Insurance Questions
Life insurance is an essential investment that may secure monetary support for your loved ones after your passing. The death benefit from a life insurance policy may help replace lost income, cover the mortgage and pay for your children’s future education.
It’s a way to ease concerns about your family’s financial stability and support them during a difficult time.
What Type of Life Insurance Policy Do I Need?
The type of life insurance policy you need depends on your preferences, budget and financial obligations. Several types of life insurance are available, most of which are classified under these two main categories:
- Term life insurance may provide coverage for a set amount of time (e.g., 10 to 30 years) and may only pay out should the insured’s death occur during that period. These policies are usually more affordable and easier to obtain.
- Permanent life insurance may provide lifelong coverage and remain active as long as you don’t stop paying your premium. This type of policy accrues cash value over time, which you can borrow against, invest or use to lower your premiums.
How Much Coverage Should I Get?
Life insurance requirements vary per policyholder. When assessing the amount of financial support you wish to give your beneficiaries, consider the following factors:
- Your annual income
- How long you plan to work to support your family
- Outstanding debts and loans (such as mortgages)
- Future expenses (like college tuition)
How Much Does Life Insurance Cost?
Insurance companies weigh several factors when calculating your premium. Typically, they consider your age, occupation, hobbies, medical history and coverage preferences. If you work in a hazardous field, engage in risky activities or smoke, you might have to pay higher premiums.
Where To Get Life Insurance
If you’re looking for life insurance near Albany, California, reach out to Freeman Insurance Services, Inc. We can help assess your circumstances and discuss optimal options. Contact us today.