Although we may not like to think about it, life insurance helps take care of your family after your death. This is one of the most important types of personal coverage you can get, and it can, depending on your policy, provide the following:
- Daily living expenses after your death
- Funeral and death taxes
- Mortgage or other debts
- College or other expenses for your children
- Supplement your surviving spouse’s retirement income.
In addition to the security it provides in the event of your death, life insurance is appealing because the cash value of the policy accumulates tax deferred and, at the time of your death, it’s paid out tax-free. You may also borrow against the cash value of the policy without tax.
What Type of Life Insurance Do You Need?
While this is entirely up to you, the majority of people purchase life insurance worth five to ten times their annual income. This all depends on your personal situation and your intent for the proceeds. If you have several young children and a spouse who doesn’t have adequate income, you’ll need more life insurance than someone with no children and a spouse with adequate income.
How Much Will It Cost?
The amount you pay will be determined by the following factors:
- Type of policy you buy
- Your general health status
- Your age
- Your smoking status
- Your gender
- Your occupation and hobbies.
Every person’s needs are unique, therefore, it’s important to have a personal consultation with an agent at Brooks to determine what type of life insurance would best meet your goals.
