The purpose of life insurance coverage is to provide financial protection and support to the policyholder's loved ones or dependents in the event of their untimely death. The death benefit can help cover various expenses such as funeral costs, outstanding debts, mortgage payments, educational expenses, and day-to-day living expenses.
Life insurance coverage typically comes in various forms, including term life insurance and permanent life insurance.
Term life insurance provides coverage for a specified period, usually 10, 15, 20, or 30 years, while permanent life insurance provides coverage for the entire lifetime of the insured individual, as long as the premiums are paid.
Permanent life insurance policies also accumulate cash value over time, which can be borrowed against or used for other purposes.
The amount of life insurance coverage needed depends on various factors, including the policyholder's income, financial obligations, and the needs of their beneficiaries. It's essential to evaluate these factors carefully and consider one's financial goals and circumstances before selecting a life insurance policy and coverage amount. Get a life insurance quote now.