30 Jan Do You Need Life Insurance? Our Answers to Your FAQs

With a new year and a new decade upon us, you may be thinking about your finances, your future and your family’s future. Questions about life insurance come up a lot when we’re talking to our clients about these topics. Because everyone’s family and circumstances are different, life insurance policies are not one-size-fits-all. 

While there’s no substitute for professional advice from your Spivey Insurance agent, we’d like to offer you some general answers to frequently asked questions about life insurance. 

• How much life insurance do I need? You should have, at a minimum, 7-10 times your annual income. Of course, having a higher amount than that may be a good idea, assuming the premium cost fits into your budget. 
• Should I have a term life or permanent life insurance policy? This is a tough one to answer because it really depends. If you need to ensure your family will be able to pay off a major but temporary expense like a mortgage or college tuition, term life insurance may be the right choice for you. It would give you the protection you need for the duration of paying off that major expense with a lower premium cost than permanent life insurance. If you want to lock in a policy that will always be there for your family (and lock in a stable premium price too), permanent life insurance is probably the way to go. 
• Can I have more than one life insurance policy? Yes! Combining a term policy and a permanent policy is common.
• Who do I need to name as beneficiaries? It may seem like common sense that a spouse would automatically receive life insurance benefits, but in South Carolina and North Carolina, life insurance has no automatic beneficiaries. If you want someone to receive the money, you need to name them specifically on the policy! 
• Do I really need this right now? Definitely! If you’re asking this question at all, you probably have people depending on you. Life insurance is best to secure as soon as you can. The younger and healthier you are, the better rate you will get. And, of course, catastrophes can happen at any time!

Life insurance can be complicated, but your friends at Spivey Insurance are here to help you find the policy that will be perfectly tailored to fit your budget and your family’s needs. 

We want to be sure you have life insurance that’s affordable and will properly protect your family. Call us at 704-821-4460 to speak with an expert, or connect with us on Twitter, Facebook, Instagram, YouTube, LinkedIn or Pinterest.