Life insurance helps loved ones cover their expenses after you die.
“Life insurance is critical financial protection for families,” Bayerle says. “It provides the resources they may need to pay immediate and continuing expenses after the death of a wage earner.”
The death benefit that beneficiaries receive can be an important financial resource that helps cover the cost of:
Daily living expenses
Mortgage
Loans loans
Credit card bills
School tuition
“Some experts suggest that a life insurance policy should pay a benefit equal to seven to 10 times a policyholder’s annual income,” Bayerle says. “An individual’s needs could be higher or lower depending on his or her unique situation.”