Death can have devastating consequences for family members and loved ones. Beyond the obvious emotional toll, losing a loved one can also cause significant financial stress. Those left behind may have to manage various costs and expenses related to their family member’s passing, and dependents and spouses may also need to find a way to replace the income of a deceased provider. With these things in mind, it’s critical to understand, acquire and maintain suitable life insurance.  

What Are the Types of Life Insurance? 

Life insurance can be customized to suit many circumstances, needs, preferences and budgets. While there are many forms of coverage, most policies can generally be classified as one of the following primary types: 

Term life insurance—This coverage can provide beneficiaries financial assistance if an insured’s death occurs during a predetermined period. Term life policies are generally more affordable due to these time constraints. They may be suitable options for those wanting to ensure financial security for dependents and spouses until a specific date, such as children coming of age or spouses reaching retirement age. 

Permanent life insurance—As long as policyholders keep up with their premiums, this coverage can pay beneficiaries regardless of when a person’s death occurs. Furthermore, these policies may offer additional financial opportunities, including acting as savings accounts that can accrue value, which may then be borrowed against, used to reduce premiums or invested. Permanent life insurance policies may be part of many subcategories, including the following: 

• Whole life insurance

• Universal life insurance

• Variable life insurance

• Final expense life insurance

How Much Life Insurance Do You Need? 

Like any other type of insurance, a person’s life insurance needs may vary significantly. A policy may not be enough to provide for family members. To determine coverage needs, those seeking or reassessing their life insurance should consider the following: 

• Income needed to replace the funds provided by the deceased

• Alternative savings or assets

• Outstanding debts

• Expected future expenses (e.g., childcare, college tuition)

How Much Life Insurance Do You Need at 60? 

Life insurance needs may also change throughout a person’s life. As policyholders approach retirement age, they may have accrued additional savings and assets, paid off various debts and may also no longer need to provide for dependents. Still, many people in this age bracket may still have significant financial stakes related to their potential death. With that in mind, a qualified insurance professional should be consulted before making any final decisions about coverage. 

How Many Life Insurance Policies Can You Have? 

There is generally no limit to the number of life insurance policies a person can retain simultaneously. A single policy may not provide sufficient coverage to suit the potential losses and needs of an insured’s loved ones. Having more than one policy may be an effective means of fulfilling insurance needs.  

Get the Right Coverage 

With nearly a century of serving the coverage needs of individuals, families and businesses, the dedicated staff at Nauertz Insurance Agency are well-equipped with the knowledge and experience to help clients assess their life insurance needs. Visit our website or call 909-931-5799 to get started today.