Life insurance is a form of coverage that pays out a lump sum of money to the beneficiaries named in the policy when you die. This payout can help your family pay for funeral expenses, cover debt, and continue living the lifestyle they are used to. There are several types of policies available, so it’s important to choose a type that fits your specific needs.

The amount of life insurance you need will vary depending on your age, responsibilities and financial situation. The best way to determine how much life-insurance you need is to consult with a financial advisor. They can walk you through the benefits and drawbacks of various options so you can find the policy that’s right for you.

There are different kinds of life insurance policies, including term, whole life, and universal life insurance. Term policies are typically more affordable because they last for a set period of time, such as 10 or 20 years. You can also buy accelerated underwriting, which skips the medical exam and allows you to get approved in a day or less. Whole life and universal life insurance are typically more expensive because they provide lifetime coverage. But they also come with the added benefit of accumulating cash value over time, which can be borrowed against or cashed in at any time.

When choosing beneficiaries for your life insurance policy, it’s important to select people who will have a need for the death benefit. Typical beneficiaries include spouses, children, and other loved ones. You can also name a favorite charity or nonprofit organization that supports causes you care about to receive the remaining portion of your death benefit. It’s a good idea to add contingent beneficiaries who would receive the death benefit if your primary beneficiaries die before you do.

It’s important to review your life insurance regularly to make sure it matches your current financial situation and family responsibilities. The amount of coverage you need may decrease as you pay off your mortgage and other debts, and as you get older and your kids start families of their own. A financial advisor can help you determine the level of life insurance you need as your needs change.

Buying life insurance is a smart financial decision that can give you peace of mind knowing your loved ones will be taken care of in the event of your death. However, more is not necessarily better. You want to ensure you have enough coverage to cover any unforeseen expenses, and that the premiums are affordable for your budget. A Policygenius agent can help you find the right balance to meet your unique needs.