Life insurance is a complex proposition, and even term life coverage has elements that must be considered before choosing a policy. However, most people have an easier time understanding the technical aspects than in choosing the right level of coverage.
I Don’t Need Coverage Because I’m Single
Even a single person needs at least enough coverage to pay their personal debts, funeral expenses and medical bills. If you have no life insurance, you may end up leaving unpaid bills behind for your family and your estate to deal with. Life insurance in Lancaster County PA can be a simple way for someone with limited finances to leave a legacy for their family or for charity.
My Coverage Only Needs to be Twice my Yearly Salary
Everyone’s life insurance needs are different, and there are a variety of factors to consider when choosing a policy. In addition to final expenses, you may want to pay debts and provide for your family after you’re gone. To get an idea of how much coverage you need, you and your agent should do a cash flow analysis; it’s no longer as simple as doubling your yearly income.
The Coverage I get at Work is Enough
It may be sufficient or it could be woefully inadequate. For a single, middle-class person, term life coverage provided by an employer may be sufficient. However, if you have dependents or anticipate a need to pay an estate tax, you’ll need extra coverage beyond that which is provided by your employer.
I’m a Stay-at-Home Parent – I Don’t Need Insurance
The cost to replace the work done by a homemaker is higher than you may imagine, and it can make good sense to invest in coverage for the loss of a stay-at-home parent. It may seem like a wasted investment when things are going well, but when you consider the cost of daycare and housekeeping services, it seems much more reasonable.
There are many myths and misconceptions surrounding life insurance in Lancaster County PA, and these are some of the most common. You should include life insurance in your budget until you have enough assets to cover your final expenses. For more information on life coverage, consult your financial advisor or agent.
