When a family member dies – particularly if they are a wage earner – their survivors may suffer financial loss, or even hardship. Life insurance is designed to protect loved ones against the loss of an individual’s income or services.
During Life Insurance Awareness Month, the State Corporation Commission’s Bureau of Insurance reminds Virginians that there are many factors to consider when determining if life insurance is right for you and your family.
“When considering your family’s financial future, review your existing financial resources, debts and other liabilities, as well as your family’s needs and goals,” said Virginia Insurance Commissioner Scott White. “Understand the different types of life insurance and shop around to compare prices and coverage.”
White encourages Virginians who already have life insurance to review their policies regularly and update their policies and beneficiaries to ensure their coverage keeps pace with their changing circumstances. Life events – such as a birth, divorce, remarriage, or other changes affecting your finances (such as a new mortgage or a new job) – may trigger a need to update your life insurance policy.
When determining whether to purchase life insurance and how much coverage you may need:
- Evaluate your existing resources and your family’s likely financial situation following a death. Consider the following: Does your spouse work? Do you have any sources of income other than salary? Do you have life insurance through your job?
- Also think about financial obligations that may fall upon family members if you die, such as mortgage or rent payments, business expenses, medical expenses, car loans or student loans. Also consider your family’s short-term and long-term goals – such as your spouse’s retirement, providing care for a loved one or your children’s education.
- Understand the types of life insurance available – term life or permanent – and how benefits are paid if you die. What you pay for life insurance (premiums) depends largely on the type of policy chosen, your health status, age, gender, occupation, family health history and lifestyle. Be sure to compare premiums, coverage and claims service when considering life insurance options.
For more information, call (877) 310-6560 or visit scc.virginia.gov/pages/Tips,-Guides-Publications.
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Crystal Graham
