Over the past few years, we've endured a lot of challenges that remind us of the vital financial protection life insurance provides. In addition to the COVID-19 pandemic, we've observed a rise in severe auto insurance claims from Pennsylvania and Maryland drivers. In fact, fatal car accidents jumped more than 10% nationwide between 2020 and 2021. 

Meanwhile, inflation is making it harder for families to make ends meet. When times are tough financially, life insurance is even more important. With life insurance, you can feel safe in knowing that your family will be protected from financial risks if anything were to happen to you. 

Whether you already have life insurance or you're buying for the first time, there are a few questions you should be ready to discuss with your insurance agent.

We're answering four questions about life insurance and dispeling common misconceptions. Read on to get the facts about life insurance. 

Answers to common questions about life insurance

How much life insurance coverage do you need?

Here's what you need to consider when deciding how much coverage to get:

• Your income

• Your outstanding debts — remember to account for interest

• Who depends on you for financial support and whether you're the primary provider

• How inflation might impact your family's financial situation

Your life insurance payout should be enough to settle outstanding debts (plus interest), support loved ones and pay for services. That way, those left behind aren't overwhelmed with expenses during an already tough time.

Who should you name as a beneficiary for your life insurance policy?

One of the most important decisions you'll make throughout this process is designating a beneficiary, the person who will receive your benefits if you pass away. When deciding who to name as a beneficiary, reflect on who in your life will be financially impacted in the event of your death. For some individuals, those people are obvious, like a spouse or children who will need to be cared for. 

People who aren't married or don't have children may assume they don't need life insurance. However, life insurance can still protect those closest to you. For example, if you had a parent cosign for your student loans, life insurance can ensure they're not responsible for paying back your student debt (with interest) in the event of your death. 

Ultimately, consider the people around you and how they would be financially affected if something were to happen to you. 

How much does life insurance cost?

There's a common misconception that life insurance is expensive. Although premiums depend on your age and medical history, it's likely more affordable than you realize. In fact, studies show that 50% of people think life insurance is more expensive than it actually is. 

According to ValuePenguin, a nonsmoker under the age of 50 can expect to spend less than $100 a month on life insurance. Plus, the younger you acquire the policy, the better rates you'll have. 

When is the right time to purchase life insurance?

Because premiums increase as you age, acquiring your policy when you're young and healthy can save you money in the long term. Because rates increase more rapidly as you age, acquiring coverage when you're young can ensure your premiums are affordable. 

As you get older, the cost of life insurance gradually increases, and it may not be as cost-effective in the future. That's why 4 in 10 people say they wished they'd gotten life insurance sooner. 

Protect your family with life insurance.

Not sure how much coverage you need? Unsure how to fit life insurance into your tight budget? Talk to an insurance agent you trust. Our agents will get to know you, so we can connect you with coverage that will give you peace of mind and protect your family. Learn more about life insurance, or contact us today to review your coverage. 

With severe car accidents on the rise, now is also a good time to review your car insurance. Have questions about your auto policy? Get in touch with us today.