Life Insurance: What Is the Minimum Amount You Need?

​Death is inevitable. When this happens, having enough financial resources for the dependent family members is important, including life insurance. Life insurance makes sure that the dependent family members who are left behind will be taken care of.

What is life insurance?
Generally, life insurance is a contract between an insurance company and an individual. It covers the expenses of an insured client when something unfortunate happens --  including death. These expenses include burial expenses, outstanding debts, and living expenses which can make family members who depend on an insured client less burdensome. 

When should one consider getting life insurance?
When individuals are the primary provider of needs in a household, they may consider getting life insurance. Life insurance can also be considered when the primary provider has more debts than what they earn. In this way, the dependent family members will not feel too much financial burden when an insured individual dies. 

Age versus life insurance
There is no right age to get life insurance. The myth about younger people being more qualified than older adults is not true. While it is true that younger people may get life insurance at a cheaper rate, insurance companies would not deny life insurance to other people just because they are older. An individual could get life insurance at any age when they decide the need for it.

What is the minimum amount for life insurance?
Choosing a life insurance plan is different per individual. To know the minimum amount needed for life insurance, the most important factor is how much money the dependents of insured individuals would need. The face value, or the amount of money that the insured policy will pay when an insured individual dies, would depend on different factors.

• Amount of outstanding debts the individual has
• Income replacement
• The need to insure people whose death may be a financial loss to an individual 

In Conclusion
Working individuals who have dependent family members should consider getting life insurance. Life insurance covers the dependent family members, especially when the insured individual passes away. In choosing the right life insurance plan, it is important that the individual is educated and has thoroughly researched the different life insurance plans. 

At Insurance Marketplace Inc., we do our best to ensure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (541) 779-0177 or Click Here to request a free quote.