Life insurance can help provide meaningful financial support to beneficiaries after the covered person’s death. It can also work as part of a comprehensive financial plan. Contact Mike Dyer Insurance Agencies today to explore your life insurance options.  

How Much Life Insurance Do I Need? 

 

Determining how much life insurance you need depends on several factors, including your income, debts, and dependents. Here are some steps to help you estimate the amount of coverage you may need: 

• Evaluate your jointly-held debts—List your debts, including mortgage payments, car loans, credit card balances and student loans. Any debts you have with a co-signer will be the other party’s sole financial responsibility after your death, so consider including enough life insurance coverage to at least pay off those debts. 
• Estimate your final expenses—These may include funeral costs, medical bills and other end-of-life expenses. These costs can vary depending on where you live and the type of services you want. 
• Determine your income replacement needs—Consider how much money your family would need to maintain their current standard of living if you were no longer around. 
• Consider your dependents—If you have children or other dependents, factor in the cost of raising them until they become financially independent. Estimate how much money they would need to cover living expenses and education costs. If you provide economic value for your family (caring for children, providing transportation, cooking for the family, etc.), be sure to include enough coverage for your children’s surviving caretaker to hire help to maintain a consistent standard of care.  

It’s important to review your coverage periodically to ensure it meets your needs as your financial situation and family circumstances change. Working with an experienced insurance agent can help you find the right coverage.  

What Are the Different Types of Life Insurance? 

 

There are several types of life insurance policies, each designed to meet different needs. The main types of life insurance are as follows: 

• Term life insurance may cover a specific period, such as 10, 20 or 30 years. It is often the most affordable option and offers a fixed death benefit. If the policyholder dies during the term while the policy is in force, beneficiaries can apply to receive the death benefit.
• Whole life insurance is designed to provide coverage for the policyholder’s entire life, as long as the premiums are paid. It has a guaranteed death benefit and a cash value component that accumulates over time. Whole life insurance is more expensive than term life insurance, but it offers lifelong protection and can be used as an investment vehicle.
• Universal life insurance is similar to whole life insurance but more flexible. It allows policyholders to adjust the death benefit and premiums over time, and the cash value component can earn a variable interest rate.
• Variable life insurance may provide access to a death benefit and a cash value component that can be invested in various accounts such as stocks, bonds, or mutual funds. It provides the potential for higher returns but also increases investment risk.
• Guaranteed issue life insurance is a type of whole life insurance that does not require a medical exam or health questions. It is typically more expensive and offers a lower death benefit than other types of life insurance. 

How to Choose the Right Life Insurance Coverage 

 

Mike Dyer Insurance Agencies can provide personalized guidance and support to help you choose the right life insurance coverage for your unique situation. They can offer objective advice and access to a wide range of policies to ensure you get the coverage you need at a price you can afford. 

Contact Us 

 

Contact Mike Dyer Insurance Agencies in Knoxville, Tennessee, to learn more about your life insurance options and get a personalized quote.