Life Insurance 101: Important Facts To Know

Where personal insurance lines are concerned, most people think about homeowner's insurance, renter's insurance, and car insurance. Another personal insurance option that's equally important is life insurance. Unfortunately, many people are misinformed about life insurance and don't recognize its importance. If you are one of those people who doesn't have life insurance yet, it's important that you know the truth. Here's a look at some of the things that you need to know about life insurance.

You Don't Need Children To Need Life Insurance

Some people mistakenly believe that they don't need to worry about life insurance until they have children to deem as the beneficiaries. However, this isn't the case. The truth is that life insurance is for more than just children. In fact, you should have life insurance for your spouse, parents, or other family members to help cover the costs of your burial, any final expenses, and more. Whether you have children or not, there are sure to be people in your life who will find those funds beneficial in the event of your death.

You Still Need Life Insurance If Your Job Offers You Coverage

Many companies offer employer-funded life insurance policies for staff. These policies usually have a lower death benefit because they are typically intended to cover funeral costs, but they are provided directly through the employer. You might think that if you have employer-funded life insurance, you don't have any need for a separate life insurance policy of your own. This couldn't be further from the truth. 

Personal life insurance is an important investment even if your company offers you coverage. With a personal life insurance policy, you can choose the death benefit amount that best fits your situation. Whether you're just looking to cover final expenses or you want to ensure that your loved ones have money to replace your income for a given period, you can choose the policy benefit amount that you prefer instead of the single limit offered by your employer.

Your Health May Matter When You Buy Life Insurance

One thing many people don't realize is that, when you opt for certain life insurance policies, you'll have to complete a physical as part of the policy application process. Your current health condition is an important consideration for most whole life and term life policies. Your insurance agent will tell you if there's any requirement for a physical as part of your application. In most cases, it's a fairly simple process including bloodwork, a general physical, and a questionnaire. 

Talk with an insurance agent near you today for more help and information about the right life insurance policy for your needs.

For more information, reach out to a company such as Binyon Agency.