Life Insurance in Wilmington, DE
Life insurance may provide monetary support to your beneficiaries in case of your death. It can help your loved ones be financially protected, covering expenses such as debts, funeral costs and living expenses. There are two major types of life insurance: term life and permanent life. Term life may offer coverage for a specific period and may pay a benefit only if the insured dies during the term. On the other hand, permanent life may provide lifelong coverage and include a cash value component that grows over time.
How Does It Work? 
Life insurance may provide your beneficiaries a payout upon your death, provided your policy is active at the time, meaning you have paid all necessary premiums. Your beneficiaries can use this payout for any purpose they wish.
How Much Life Insurance Do I Need?
Determining the appropriate amount of life insurance depends on various factors specific to your situation. Here are some key considerations to assist you in calculating the right coverage:
- Consider how many years your dependents will need financial support and multiply your annual income by that number.
- Include any outstanding debts (such as a mortgage, car loans and credit card debt) and future expenses (such as college tuition for your children).
- Estimate the daily living expenses your family would need to cover in your absence, such as utilities, groceries and healthcare.
- Take into account any savings, investments or other assets that can be used to support your dependents.
- Plan for end-of-life expenses, including funeral costs, medical bills and estate settlement fees.
- Factor in any existing life insurance policies or benefits that could help support your dependents.
A general rule of thumb is to aim for coverage 10 to 15 times your annual income. However, every person’s needs vary, so it’s best to speak with an insurance professional to tailor the coverage to your specific circumstances.
Where to Buy Life Insurance
Leaders Insurance Group can help you learn more about your insurance options. Contact us today to get started.