One of the best ways to keep your family and loved ones financially secure in California is purchasing life insurance. Life insurance pays out a specific amount of death benefit to the named beneficiary upon your death. The money can be used to pay your funeral expenses, medical bills, and future living expenses for your dependents upon your death. At Daniel Cuevas Insurance Agency Inc., we recommend buying life insurance while young when the rates are lower, and you have fewer responsibilities.
Is life insurance for everyone?
Life insurance is a powerful financial tool for anyone looking to keep their dependent financially protected after their demise. While anyone can buy life insurance, there are exceptional cases where you may need to purchase insurance. Such circumstances include situations where you have young children, you have children or parents with special needs, or have been diagnosed with chronic illness and disease that needs special treatment. It is essential to understand that life insurance premiums rates increase by age. The older you get, the more expensive and difficult it becomes to buy insurance.
What is the right amount to buy?
The correct amount to buy depends on your budget, needs, and preference. It also has a lot to do with your financial situation. For instance, if you are single and childless, your life insurance needs are less than those married and with big families. The rule of the thumb is to buy adequate life insurance if you have dependents. Calculate your annual cost of living and determine how much coverage will be sufficient for your family. If you have mortgages, debts, or loans pending, you should also ensure that this sum is added to your life insurance to avoid stressing your family upon your death.
Remember, your life situation will keep changing, so will be your insurance needs. Therefore choose your package wisely. Need more information about life insurance in California? Feel free to speak to us at Daniel Cuevas Insurance Agency Inc., and we will be happy to help!