Legacy Financial
Life Insurance:
Protect what Matters Most
How Much Life Insurance Do you Need?
When it comes to selecting the most suitable life insurance for an individual, there is no universal solution. The amount and type of coverage required depend on the individual and their:
- Age
- Health
- Income
- Number of Dependents
Major life events like getting married, getting divorced, having children, or changing your income can all influence your life insurance policy.
A basic rule of thumb is to have enough life insurance coverage to provide approximately 10 times your annual household income. For example, if the current household income totals $50,000, consider having a total of at least $500,000 in life insurance protection.
Types of Life Insurance
Term Insurance
This type of insurance is usually less expensive than permanent insurance with the same face value, however term insurance is temporary and does not accumulate cash value.
Permanent Insurance
Life Insurance coverage remains in effect until the owner's death. Most permanent life insurance policies also have some type of savings component that can build cash value over the life of the policy.
Power Of Choice
Frequently Asked Questions
Why Do I need life insurance?
Life insurance can provide financial security for your family by replacing your income and covering various expenses such as debts, childcare, and education costs after your passing.
Which type of life insurance is best?
Term life insurance covers a specific term with higher coverage for lower premiums, while permanent life insurance offers lifelong coverage. Consider your budget and coverage needs before deciding.
At what age should I apply for life insurance?
Life insurance is valuable not only for those with dependents but also for individuals without a family. It's advantageous to secure coverage while young and healthy to benefit from lower premiums. Consider consulting an insurance agent before major life events like marriage, parenthood, or home purchase.