Life Insurance in Elizabeth, NJ
The right life insurance coverage can provide financial protection for your loved ones after you pass away. Contact Upix Agency in Elizabeth, New Jersey, to learn more about life insurance policies.
What Is Life Insurance?
Life insurance is a binding agreement between you and your issuing insurance company. In exchange for your premium payments, they’re obligated to pay a lump sum, known as a death benefit, to your chosen beneficiaries if you pass away while the policy is active. Your death benefit may be used to replace your annual salary or pay for estate taxes, funeral costs and other outstanding expenses in your name.
How Much Life Insurance Do I Need?
You’re not legally required to have life insurance; however, you should consider buying a life insurance policy if your death could cause financial hardship for your loved ones. The following instances are examples of circumstances where a life insurance policy could be beneficial:
- Your spouse relies on your salary.
- You have children.
- You have your own business.
- You provide services for your family (e.g., childcare).
- You have outstanding debts.
- You want to cover future financial expenses (e.g., college tuition).
The amount of coverage you need to prevent your family from experiencing financial hardship after you pass away will vary with your situation. Contact Upix Agency to speak to an insurance agent today.
How Many Life Insurance Policies Can I Have?
There is no legal limit to the number of life insurance policies you can own. Consider getting a second life insurance policy for added protection following a significant life change event (e.g., you have a child). However, buying multiple life insurance policies isn’t the only way to increase your coverage. Your coverage amount may vary with the details of your policy, your insurance company and the type of life insurance you have.
Which Type of Life Insurance Should I Buy?
There are two primary types of life insurance coverage:
- Term life insurance coverage provides coverage for a set amount of time. It is generally less expensive than permanent life insurance.
- Permanent life insurance coverage provides coverage for your entire life. These policies are also known as universal life insurance or whole life insurance. Depending on your insurance company, you may be able to accrue wealth with these policies.
Both policies may come with a level premium, meaning your insurance costs remain the same over time, even when you’re older and require more coverage.
Buying life insurance is an important decision that can impact your family’s financial future. The agents at Upix Agency are here to help. Contact us for guidance on which life insurance policy is right for you and to get a tailored insurance quote.