Hed_interior_faq

Frequently Asked Questions

Life Insurance

Why do I need life insurance?

While many believe they do not need life insurance, consider the consequences on your family if you die prematurely. Life insurance is critical for the financial security of your family. Without coverage, in the event of your death, your loved ones may be severely impacted by the loss of your income.

How much can I expect to pay for a policy?

The price of your premium is determined by a number of factors such as your health, medical history, age, and whether or not you smoke. Insurance companies classify your risk in a “rate class” system to arrive at the premium amount.

How much life insurance do I need?

Determining how much life insurance you need requires a careful examination of your current and future financial obligations (i.e., a combination of (a) what would it cost to help your surviving family members meet immediate and ongoing needs like funeral costs, taxes, food, clothing, utilities, mortgage payments, etc. and (b) future obligations like college and retirement funding) and the resources that your surviving family members could draw upon to meet those obligations (i.e., your spouse’s income, savings and investments, other income producing assets, and any life insurance you might already own).

The difference between the two (your financial obligations minus the resources your family has to meet those obligations) is the approximate amount of additional life insurance you need. If this sounds confusing, don’t worry. You’re not alone. That’s why most people turn to a qualified insurance professional when they want to figure out how much insurance they need.



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