Sunday, December 11, 2022

What is a Life Insurance Coverage Amount?

The life insurance coverage amount is the amount of life insurance provided by your life insurance policy.

It's the amount of life insurance you are insured for.

Upon your death the death benefit (coverage amount) is paid out from the insurance company to your beneficiary. 

The death benefit payout may be decreased based on any outstanding loans on the life insurance policy.

Selecting the right amount of life insurance coverage is one of the most important decisions you make when buying a life insurance policy.

You want to make sure you have enough protection to accomplish the goals you have set out for your life insurance policy; such as, replacing your income for your family.

It is usually recommended to use a life insurance needs calculator to assist you in determining how much life insurance coverage to purchase.

Here's how to learn more about choosing a life insurance coverage amount.

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