Sherrie Littlejohn: Hi! I am Sherrie Littlejohn with Wells Fargo & Company. Today, we are talking about how to find the right type of life insurance for you and your family. No amount of money can make up for the loss of a loved one. However, having a properly designed life insurance policy in-force at the time of death can allow the family to focus on emotional healing without having to worry about financial issues. If your family or loved one relies on your financial support, you should definitely have some type of life insurance policy. You also need to make sure you have the right amount of coverage.
As a rule of thumb, the coverage should be 7-10 times the income of the insured. Many factors can affect that figure. As with any type of insurance, it's important to review your life insurance needs periodically and make sure your coverage is still appropriate for your family's current and future needs. Since buying life insurance is a very important financial decision, you should shop around and talk to multiple companies. Some companies can provide you with life insurance quotes from multiple insurance companies. You can choose variety of flexible plans based on your specific life insurance coverage needs.
When considering purchasing life insurance, remember that a medical exam is usually necessary. Life insurance pays a predetermined amount of money to the beneficiaries listed when the policyholder dies. The funds are usually earmarked for specific purposes such as education costs, living expenses, debt reduction, and payment of medical costs or final expenses. Having a properly designed life insurance plan can allow your family to move forward and achieving their financial goals.