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Time Life Insurance: How Long Should My Coverage Be?

Here is an obvious statement: the cost of daily living can increase rapidly. That's why life insurance is so important. It allows you to protect your family when you are away.

Think about the consequences of losing not only your income but all the other contributions you make to the family.

  • Can they cover the mortgage or monthly bills without you?
  • Have Are you saving enough to pay for funeral expenses?
  • What about all the extra expenses for childcare and family upbringing?

The idea of ​​life insurance is to make sure your family can continue with the lifestyle they have, if you pass away unexpectedly and can no longer contribute financially.

With life insurance from Erie Family Life, your insurance compensation in the event of death can cover these expenses and more. It is an extra layer of protection that can help your loved ones move forward without facing financial difficulties in the process.

What life insurance options are available?

When it comes to life insurance, the two most common types of insurance are: [1

9659003] Life insurance: With life insurance, you are covered for a certain number of years and you decide how long the "period" will be. If you live longer than that time frame, your protection ceases and no benefit is paid.
  • Permanent life insurance: Permanent life insurance offers coverage for your entire life. With this type of insurance, your family and beneficiaries are often protected throughout your life and the insurance is paid out at your death. 1
  • Many people believe that permanent life insurance is part of a long-term protection strategy. This is because some permanent life insurance policies collect cash that you can borrow against, if needed. 2

    There are many different types of life insurance, but longevity is a common choice for first-time buyers. So let's take a deep dive into longevity and how it works.

    How do I choose my life insurance?

    If you've decided to buy a life insurance policy, you're probably wondering how long you have coverage. The answer? It depends on your unique life situation.

    This is why ERIE offers a variety of life insurance options, including 5-, 10-, 15-, 20- and 30-year plans.

    Your local ERIE agent can help you advice on specific coverage amounts and years that may be right for you and your family, based on your specific needs and requirements. But here are some things to keep in mind:

    • How old are your children? According to the US Department of Agriculture, raising an average child $ 284,570 (adjusted for inflation) costs 18 children. And that does not even include college expenses! If you have children of your own, a life insurance policy can help you cover these expenses should something happen to you. When choosing your life insurance period, consider the age of your children and how long they may need your support. For example, a 20-year life insurance policy of $ 200,000 or more would likely provide protection for a family with two young children until they go to college.
    • Do you have a mortgage? Sure. Housing is one of life's most basic things. And chances are it also represents your biggest monthly bill. If you own your home, buying a life insurance policy is a great way to keep your mortgage paid off when you are no longer there to support your family financially. After all, your family will already be able to cope with the loss of a loved one; there is no need to put stress with a possible shield on top of it. When choosing your life insurance period, consider how many years it will take before your home is fully paid. Since about 70% of all mortgages are 30-year mortgages, a 30-year life insurance policy is an excellent option.
    • When do you plan to retire? The average retirement age in the United States is 65 years for men and 63 years for women, according to data from the US Census Bureau. If you leave a spouse behind, the combination of Medicare and social security benefits – along with any retirement savings or pensions – means they will have a better chance of supporting themselves in your absence during retirement. But what about the years in between? Buying a life insurance policy can help financially support a spouse until they reach retirement age. To determine which term is right for you, just find out how many years it will take your spouse to retire.

    How much life insurance do I need?

    Now that you have calculated how long it's right for you, you need to decide how much coverage you need.

    In general, your life insurance policy should match the financial obligations you want to cover. This may include:

    • Mortgages: The amount it would take to pay off your house
    • Consumer debts: Any money you owe on credit cards, credit cards or cars medical bills
    • Student loans: The outstanding balance of your (or your children's) education costs
    • Household expenses: It would be difficult costs for household expenses, from groceries to bills to pay without your income
    • Funeral expenses: Average funeral expenses currently range between $ 8,000 and $ 10,000

    Need help calculating? Check out ERIE's Life Insurance Calculator to estimate the amount of insurance that is right for you.

    What happens when my term expires?

    With many life insurance policies, your insurance simply expires at the end of the term. There is no refund of your premiums and no death benefit is paid. (This is why term insurance policies cost less than life insurance policies.)

    Other term insurance policies guarantee you a certain interest rate for a certain period of time, called the "level premium period". When that period is over, your coverage continues … but at higher prices that generally increase every year. In some cases, you may be eligible to purchase another life insurance policy with your current age and health status.

    Good news: If you are an ERIE customer and want to continue with your insurance policy at the end of your semester, you may have options. We let you convert your insurance to a permanent life plan that provides coverage for your entire life – not just a few more years. And we guarantee this conversion privilege regardless of your health, profession or hobby. 3

    If you want to know more about how to convert a life insurance policy, you can talk to your ERIE agent.

    Why should I buy life Insurance through ERIE?

    At Erie Family Life, we are proud to offer affordable and flexible life insurance coverage to meet your family's unique needs. In addition to a range of life and lifetime insurance, we also provide:

    • Guaranteed insurance option 4 : The guaranteed insurance option that you can purchase allows you to purchase additional insurance later, even if a condition such as heart disease or cancer determines that you are "uninsured" in the future.
    • Discounts with several insurances: ERIE offers discounts on several insurances depending on in which country you insure your autoand homewith us. 5 Ask your local ERIE agent how much you can save when adding a life insurance policy. Just keep in mind that life insurance can not be combined with car insurance that uses the ERIE Rate Lock® approval to get a discount on multiple insurance policies.
    • Accelerated Death Benefit: In the event of a terminal diagnosis, you can Accelerated Death Benefit rides 6 use part of the value of the insurance to pay for expenses while you are still alive – such as clinical trials or experimental treatments that are not covered by your health insurance.
    • Purchase Option Rider: Add Long-Term Care Accelerated Death Benefit Rider to a new permanent plan at the time of conversion without proof of insurability. (Without this rider, an LTC rider can be added at the time of conversion but will be subject to issue guarantees.) 7
    • Waiver of premium benefit: This optional rider waives premiums on your term or your whole life insurance in the event that you are injured or disabled and cannot work, which gives you peace of mind that your life insurance cover remains intact.
    • ERIExpress Life®: ERIExpress Life is a life insurance that is easy to obtain and easy to afford which gives you the protection you need through a simple application process, no physical examination 8 and a faster approval time. Your life insurance cover can take effect on the same day as your application, and an Accelerated Death Benefit rider is included automatically.

    Finding the right balance

    You should not have to choose between your budget and your family's safety. With just the right coverage and flexible options, we can help you build a life insurance policy that is affordable now and adaptable later. Talk to your local ERIE agent to get started today.

    1 The guaranteed death benefit may expire if no premiums are paid after the first premium, or if subsequent premiums are insufficient or if the account value is reduced by a withdrawal or

    2 The insurance account value can be lent or withdrawn. Removal or reduction of the account value will result in a reduction of benefits if left unpaid.

    3 The term policy conversion privilege must occur during the level period or before the age of 70, whichever occurs first. The nominal amount of the remuneration policy must be equal to or less than the nominal amount of the forward policy. The term conversion options for ERIExpress Life are different from our standard term plans.

    4 The guaranteed insurance option must be approved by the insurance company and is not available with all plans. Number 0-40 years. See an ERIE agent for rider specifications, availability, conditions. This driver is not available with the product ERIExpress Life. Additional cost will be added.

    5 Saving percentages are over individually purchased insurance in combination with life insurance and / or personal disaster insurance. Discounts are subject to eligibility criteria and prices and rules that apply at the time of purchase. See individual insurances for specific coverage details. Certain terms and conditions may apply. See our Disclaimer for more information.

    6 ERIE® life products and services provided by Erie Family Life Insurance Company, based in Erie, Pennsylvania, a member of the Erie Insurance Group, are not available in New York . The rider is available in connection with a qualifying life policy. See individual insurances for specific coverage details. Certain terms and conditions may apply. See our disclaimer for further information.

    7 In MD, this rider is called the Purchase Option Rider for Accelerated Benefit Long-Term Care Insurance. In TN, this rider is called the Long-Term Care Purchase Option Rider (EFL1160 TN 3/19). The addition of his rider is subject to approval of the issue and additional cost will be added. 8 The ERIExpress Life® application contains medical issues. All applications must be approved by the insurance company. Certain health conditions may not entitle you to this product and may require a fully guaranteed life insurance policy instead.

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