Stephanie Chisolm: Hi! I'm Stephanie Chisolm Wells Fargo team member. Today we're talking about the basics of life insurance, for you and your loved ones. No, amount of money can make up for the loss of a loved one.
However, having a properly designed life insurance policies at the time of death can allow the family to focus on emotional healing, without having to worry about financial issues.
So how does life insurance work? Life insurance pays a predetermined amount of money to the beneficiaries listed when the policyholder dies. A beneficiary is the person or entity named in the life insurance policy to receive the proceeds.
The funds can be used for education costs, living expenses, debt reduction and payment of medical costs or final expenses. If your family or a loved one relies on your financial support, you should definitely consider life insurance and make sure you have the right amount of coverage. Many factors can affect this figure, including a number of children you have and how old they are.
Your income, if you and your spouse both work and what it would cost to pay off your home mortgage and other debt. As with any type of insurance it's important to review your unique life insurance needs periodically, and make sure your coverage is still appropriate for your family's current and future needs.
Buying life insurance is a very important financial decision. So it's a good idea to shop around. Even if you can't afford a large policy as you might like some coverage is better than no coverage.
You can always purchase a smaller policy now and buy an additional policy in the future. You can choose from a variety of flexible plans based on your specific life insurance coverage needs, and some companies even provides you with life insurance quotes from multiple insurance company.