The purpose of a life insurance policy is to cover the financial risks associated with death. What this means is that your policy can be designed to cover a family financially in the event of the death of the primary provider. The amount of such a policy should be designed to cover paying off financial obligations, such as the mortgage, any vehicles in the name of the insured or any debts, such as medical bills or other costs, associated with the death of the individual.
Kiley Insurance Agency offers several different options for life insurance coverage. These different coverage plans are affected by variables, including the duration of coverage, amount of required coverage, payout method, frequency of payments and stability of payments.
In order to ensure that you are properly covered with a life insurance policy that will sufficiently meet your needs, Kiley Insurance Agency can help you to evaluate your needs and consider your complete financial situation. The rule of thumb is to get a policy that would provide five to ten times the amount of your annual salary, but depending on your needs, you could require more to protect your family and investments. Our agents can help you develop a custom financial plan to ensure proper coverage.
Other Factors to Consider
Some people view life insurance as an investment. While some policies have investment components written in, life insurance itself is not an investment. All forms of life insurance must pay death benefits to the beneficiary and cover the risks involved in order to work, such as determining a person’s health rating and establishing a premium level.
Once all of the information has been collected it will be reviewed by a third-party underwriter who will predict the person’s health rating in order to determine budgeting for the policy. Some people guess that their health rating is better than it actually is, which can result in problems or surprises on down the road.
The information that you provide to the insurance company must be as accurate as possible to avoid problems with your policy. Your insurance agent can help you throughout this process and find the right policy for you and your particular situation that will cover your family’s financial needs.