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Home » What is Life Insurance?
December 6, 2022
Shelton Insurance

What is Life Insurance?

If you die unexpectedly, your loved ones could face severe financial hardship associated with your death. A life insurance policy is a way to provide financial security for your beneficiaries after you pass away.

Choosing the right life insurance policy may seem daunting. That’s why we’re here. Contact Shelton Insurance in Hollister, California, for more information on life insurance coverage solutions we offer.

What Is Life Insurance?

A life insurance policy is a legally binding agreement between you and your insurance company. In exchange for your monthly premiums, your insurer will provide death benefits to your beneficiaries after you pass away, per your policy terms. In some instances, your insurer may require you to undergo a medical examination as a prerequisite to receiving coverage.

What Does Life Insurance Cover?

Your life insurance policy may vary with your insurance company. Here are some of the death benefits your life insurance policy may provide to your beneficiaries:

  • Estate taxes can pay taxes associated with the transfer of your estate.
  • Final expenses can pay for burial expenses, funeral costs and other estate administration costs.
  • Inheritance creation can help you pass down wealth and assets to your chosen beneficiaries.
  • Income replacement can provide financial support to people who depend on your income (e.g., young children)

Do I Need Life Insurance?

Life insurance is not required, but many people choose to buy it as a means to protect their beneficiaries from financial hardship. While life insurance may not be right for everyone, here are some examples of why you might choose to secure a life insurance policy:

  • You have young children at home.
  • You have a mortgage.
  • You own your own business.
  • You have a partner who relies on your income.
  • You want to provide college tuition for your children.
  • You have outstanding loans.

Without a life insurance policy, these responsibilities could fall to your beneficiaries to pay off. Contact Shelton Insurance to learn more about how our life insurance coverages can provide peace of mind for you and your loved ones.

How Much Life Insurance Do I Need?

There is no one-size-fits-all policy when it comes to life insurance. Your insurance needs will depend on your financial situation, your responsibilities and the legacy you’d like to leave behind. When determining how much life insurance to buy, you may want to consider the cost to replace your annual salary and the services you provide (e.g., child care), in addition to any debts you may have.

How Do I Buy Life Insurance?

Let us help. Contact Shelton Insurance to learn more about the life insurance coverage solutions we offer and speak to an insurance agent today.

 

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.

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