If you have children and/or a partner who depends on your salary or debt (e.g., mortgage or outstanding loans), you should consider life insurance. A life insurance policy can protect your loved ones financially if you pass away unexpectedly.
Contact The DeLuca Agency to learn more about our life insurance coverages and to get started with a free life insurance quote. We have offices in Greenwood Village, Colorado, Draper, Utah, and Owings Mills, Maryland.
What Is Life Insurance?
Life insurance is a contract between you and your insurance company. If you pass away while your policy is active, your insurance company agrees to pay a lump sum, known as a death benefit, to your chosen beneficiaries.
Although individual policies may vary, the following are examples of typical death benefits:
- Final expenses may help pay for burial costs, funeral expenses and other estate administration fees associated with your passing.
- Lost income may provide financial support to your chosen beneficiaries who depend upon your annual salary.
- Estate taxes may assist with taxes associated with transferring your estate.
Your life insurance policy may also enable you to create an inheritance to pass down your wealth and assets.
Types of Insurance
The following are two primary types of life insurance coverage for you to consider:
- Permanent life insurance will provide coverage for your whole life. These policies typically have a level premium, which means your premium payments will remain the same even when you’re older and require more coverage. Some life insurance companies will also allow you to use your permanent life insurance policy to accrue wealth by withdrawing or borrowing money from your policy. This policy may also be called universal life insurance or whole life insurance.
- Term life insurance will provide coverage for a set period, known as a “term.” At the end of your term, your beneficiaries will no longer receive death benefits when you pass away. Generally, term life insurance is the cheaper of the two policies.
How Much Life Insurance Do I Need?
Life insurance can help cover your financial obligations. The exact amount of coverage you need will depend on your needs.
The following are some questions that may help you determine the amount of coverage you need:
- Do you have debts?
- Do you have future financial obligations (e.g., college tuition)?
- Does your partner rely on your salary for financial stability?
- Do you provide services (e.g., childcare) that are costly to replace?
The agents at The DeLuca Agency can help you understand your insurance needs. Contact us for more information.
How Much Does Life Insurance Cost?
The cost of your life insurance may vary with several factors. The following are examples of variables that may affect your rates:
- Your age
- Your gender
- Your medical history
- Your lifestyle (e.g., nonsmoker versus smoker)
- Your death benefits
- Your policy details and type
Finding the right life insurance takes time and effort. Contact The DeLuca Agency to get started.
We serve Arizona, California, Colorado, Georgia, Idaho, Indiana, Kansas, Maryland, Michigan, Missouri, Nevada, Ohio, Oregon, Texas, Utah, Washington and Wisconsin.