Understanding life insurance policies

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Knoxville, Tenn. (WVLT) – This is a subject that few people like to talk about, but it is an important subject. What happens to our loved ones when we die? Since the start of the pandemic, more and more people are buying life insurance.

“Whenever there is an event involving a massive loss of life, interest in life insurance naturally increases,” said Darin Reeser, Regional Director of Extended Health Benefits at Securian Financial.

But how much insurance do you need? “Some advisers may tell you that you need an average of 10 to 15 times your average salary, but there are a lot of things to think about. So where are you in your life? Do you have children? Do you have a mortgage Do you have student loan debt Do you have credit cards Are you the sole breadwinner in your family How important is it to replace your income to meet future needs? education? Many factors are unique to each individual’s concerns or questions,” he said.

There are many online calculators which you can use to help you decide.

When to take out a policy? Reeser said the sooner the better. “The sooner you buy it the better, but again it comes down to what are your financial concerns? I think a lot of times people new to the job market think “I’m single, I’m new to the job market, I don’t have a mortgage yet, I don’t have a lot of obligations”, but can – maybe they have student debt, maybe they have credit cards. The last thing they would want to do is leave this obligation to a family member or loved one.

He said to take a look at the policies offered by your employer. Often these give you guaranteed coverage, group rates and are easy to enroll. Reeser said to make sure you understand how long you are covered and that you may need additional coverage beyond what your employer provides. “You may also consider purchasing additional life insurance yourself in the private market through a financial adviser or insurance agent. The cost will be based on a number of factors including the type of policy, your age, gender, medical condition, family history, driving record and even your travel habits.

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