Benefits of Life Insurance

When it comes to protecting your family’s future, life insurance is a vital financial tool. If one or both spouses pass, your children’s future would be taken care of. The funds can be used to pay for burial and final expenses. You can also designate funds toward your children’s future college expenses. Money can also be earmarked for nonprofit organizations that are close to your heart. There are many benefits to your life insurance policy. That is why they require a lot of thought. When you begin considering life insurance, you’ll have many questions. Our agents at Richards Insurance Agency can provide guidance. We have worked with families in the Lincoln, NE area since 1994.

As you begin to learn about your life insurance options, you will need to devote some thought to the type of policy that best suits your needs. You will also need to consider the impact that inflation and estate taxes will have on your loved ones. Term and whole life are the primary types of life insurance policies. Term policies are in effect for a predefined period. They can be renewed, but each renewal will be more expensive than the last. They are more economical than whole life policies, but they do not accrue cash value over time. Whole life policies, on the other hand, remain in effect throughout the policy holder’s lifetime. While the premiums are higher, they build cash value. This can be borrowed against if you need to. 

In the Lincoln, NE area, our team at Richards Insurance Agency is ready to discuss your life insurance options. Contact our office for general information or to learn how to get a quote. Your family’s future is important. We want to help you get the best available coverage. Take a few moments today and give us a call!

How Much Life Insurance Do You Need?

How much life insurance you will need will depend on financial and personal circumstances. You will need enough to replace income and cover dependents’ expenses, including any future ones.

  • Financial Obligations: If you aren’t sure about your financial obligations, start with considering your debt. If you die with outstanding debt, your survivors may be responsible for it if they cosigned on a loan. You want to make sure you leave enough for beneficiaries to pay off the debt, especially if it’s a home or family car. Be sure to factor in the cost of raising children. If you have dependents, this may mean you need to increase your life insurance policy. If you have kids, you may also want to factor in the cost of college when getting life insurance. Plan what college costs will be and take into account increases over time.
  • Personal Considerations: Your age and health not only determine how much you should get but for how long you will want it. The older you get, the less you need because you should have fewer dependents and less debt. As you get older, the more expensive life insurance becomes. So, it’s best to purchase a policy when you are young and healthy to get a more affordable rate. How much life insurance you can afford should be a consideration as well. A life insurance policy isn’t good if you can’t afford it.

An agent at Richards Insurance Agency in Lincoln, NE can help you determine how much coverage to get. It’s good to tally up your resources, which include liquid assets and after-tax income. Then figure out your financial obligations with expenses and debt. Subtract liquid assets from financial obligations, and this is your coverage gap. Your coverage gap is how much insurance you should have. 

Contact Richards Insurance Agency in Lincoln, NE to get a quote on life insurance and have your questions answered.