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Considering life insurance? Here’s how to get the right type of policy – Part 1




Life insurance may not be one of the most glamorous purchases you can make, but it’s a necessary one for many Americans. After all, life insurance coverage may be the only source of financial protection for your family if you pass away during your working years. Without coverage, your spouse and dependents could easily struggle to pay your final expenses, let alone get by without your income for years to come.

But because there are so many different types of life insurance, finding a right-fit policy can be overwhelming — yet failing to buy life insurance could easily leave your family in a dire situation when you’re no longer there to help.

So, if you don’t already have life insurance, you should consider whether it makes sense for you to be covered. And if you’re in the market for a new life insurance policy, EPIA will help you explore the different types of insurance that are available, depending on your budget, needs, and goals.


Do you need life insurance?

For the most part, many people could benefit from having some sort of life insurance coverage in place. In particular, most experts agree that adults with careers and kids should really have a significant amount of coverage in case the worst happens.

But Americans haven’t necessarily gotten the memo. In fact, a 2021 Insurance Barometer Study from Limra, an insurance and financial services research association, shows that the number of people with life insurance in the United States has fallen 11 percentage points to 52% over the last 11 years.

The experts at Limra note that this trend could be due to a broad drop in employer-based group life insurance benefits. However, the result is the same — fewer people with life insurance coverage means fewer families are afforded this type of financial protection.

If you’re unsure whether you need life insurance, here are some of the reasons you may want to buy coverage:

Income replacement: At its core, life insurance is designed to provide replacement of your income once you’re gone. This can be crucial if you have a spouse and/or dependents who are relying on you during your working years.

Coverage for other financial obligations: If you have a mortgage, a car loan, credit card debt, or other financial obligations, the proceeds from a life insurance policy can be used to pay off your debts. Without it, your family could be left figuring out how to liquidate your assets or pay your bills after you’re gone.

Final expense coverage: According to the National Funeral Directors Association (NFDA), the median cost of a funeral with burial and viewing (without the cost of a vault) was $7,848 in 2021. Without life insurance coverage, your family could struggle to cover these final expenses.

Better rates and eligibility when you’re young: If you’re young and healthy, now’s the time to buy life insurance since you’ll qualify for lower rates. And if you wait to buy coverage and your health deteriorates, you may not even qualify for coverage later on.

When should you skip life insurance? Most experts agree there are situations where you may not need life insurance at all. If you’re young and debt-free and you don’t have any dependents, it’s possible you may not need this important coverage. The same can be said if your kids are grown and you have plenty of assets, or if you’re already retired and no longer need to replace a lost income.


Source 資料來源: https://us.cnn.com/


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EPIA inc. is a private Insurance Agency with no ties with legal entities. The information contained in this article is based on information provided by CNN's Official Website. Consumer questions on how to file their federal or state income taxes should be referred to a tax professional.

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