Many families are simply unsure how much or what type of life insurance to purchase when it comes time to decide. A report in the Economic Voice lays out consumers' options.
A term life insurance policy could be the most cost-effective and manageable for families, said the report. By insuring the policyholder's life for a period of time and paying out a simple sum, a term life insurance policy provides financial protection that families can be sure of and don't need to worry about.
At the same time, the report said consumers with businesses or estates may need to consider whole life insurance or other, more complex insurance options. If a policyholder has money they would like to pass down to posterity, insuring against an inheritance tax could be a smart move, said the source, and taking investment options into consideration beforehand can help buyers target the best life insurance policy for them.
Experts say most everyday consumers won't need much more coverage outside of term life insurance, though riders can be purchased that allow seniors to cover the costs of long-term care into retirement. Those expenses can quickly escalate into the tens of thousands of dollars each year.