All Posts tagged life insurance

Buying the Right Amount of Life Insurance

When the time comes to buy that first life insurance policy, knowing how much insurance you need means some careful calculations and considerations. It is important that you understand all of the factors when you choose a policy limit. If you are the primary source of your household’s income, you need to be sure that you include a sufficient amount in your policy for income replacement. Think about how much of your annual income is typically applied to household costs, or how much your surviving family members would have to receive in order to make ends meet after paying your funeral costs.

Make sure that your policy also includes enough to settle any of your debt that is not already protected by supplemental insurance. Finally, consider how much additional would be helpful for your family to have money for expenses while they learn to adjust to daily life. You may decide that you want trust funds for your children. If so, include this amount in your policy limit as well, and specify the calculations in your will. For more details about your policy and coverage options, contact the Insurance Agency of Dean Davis today.


The Different Types Of Life Insurance

Life insurance is extremely important, but some people may not realize that there are different types of life insurance, too. Each type of life insurance is applicable to different situations, which means that a policy holder may want to consult in-depth with their life insurance agent regarding their personal needs and the needs of their family. The three types of common life insurance policy are term life insurance, whole life insurance and universal life insurance.

Term life insurance provides the policy holder with a fixed amount of coverage for a fixed period of time, otherwise known as a term. This means that the policy holder might actually outlive their policy and need to purchase another one, and this is especially possible today as people are living longer. Whole life insurance provides the person with coverage up until the age of 100, and universal life insurance is a mix between both insurance types. The actual premiums on these insurance packages will vary depending on age, associated risk factors and the types of benefits and coverage being requested.

Those with more questions about the different types of life insurance can contact the Insurance Agency of Dean Davis, Inc.