Stop wondering and start planning. Here are some basic answers to life insurance questions

If you bought life insurance last year, you weren't the only one.

The pandemic has Americans thinking about their finances, including life insurance, and how they can help take care of their loved ones should the unexpected happen.

In the first six months of 2021, the total number of life insurance policies sold increased 8%, compared to 2020, according to LIMRA, a nonprofit life insurance industry research group.

That's the largest year-over-year increase since 1983.

If buying life insurance is something you've been meaning to do, check out these Q&As.

Q. Life insurance has been on the back burner for me. How can I tell if I need it, and how will it help my loved ones?

A. If your death will impact someone financially, you may need life insurance.

Life insurance pays a cash benefit to your loved ones after you die. Its purpose is to help them pay funeral costs, final medical bills, daily living expenses, and outstanding debt.

How much you need depends on your situation. Your benefit can help cover the above expenses, as well as give you the ability to leave something for your grandchildren, a special relative, care for your pet, or a charity.

More important is how your life insurance policy takes care of your loved ones' emotional needs, giving them the freedom to grieve and focus on healing as important bills get paid.

Q. If my main goal is to cover my funeral expenses, how much does that cost?

A. Depending on funeral type (burial or cremation), costs vary greatly. But here are a couple figures from the National Funeral Directors Association (NFDA) to give you an idea.

According to the NFDA's 2019 Member General Price List Study:

• The national average cost of an adult funeral service with burial is $9,135, including a casket and a vault.

  (This cost doesn't include cemetery, monument/marker or miscellaneous other expenses, such as flowers.)

• The national average cost of an adult funeral service with cremation is $6,645, including a rental casket and urn.

  (This cost doesn't include vault, cemetery, monument/marker or miscellaneous other expenses, such as flowers.)

Q. If I don't want to have a service, can that lower the expense?

A. A little, but think about how a funeral, memorial service or celebration of life service can help your family. While the pandemic cut into in-person funerals for a while, there's nothing like being surrounded by family and friends to help each other bear a loss. From prayers and hymns to hugs and a few stories about you, a memorial service of some kind can bring a lot of comfort to your family as part of the healing process.

Q. Is there an option for me if I need life insurance and prefer not to go through a long, complicated process?

A. Yes. With a guaranteed acceptance life insurance policy, there are no health questions to answer to get coverage. It's usually as simple as completing an application and sending in the first premium.

Q. I like the convenience of purchasing things online. How does that work with life insurance?

A. Many life insurance companies offer an easy online application. This allows you to shop for the life insurance that best meets your needs — including a guaranteed issue life insurance product.

And, with many companies, the products are available at the same price regardless of the buying method you choose — online, on the phone, through your trusted agent, or through the mail. The choice is yours.

Q. Before I buy life insurance, what should I know about the company I'm considering buying it from?

A. Here are a few points about a company you should familiarize yourself with:

• What are the company's ratings through independent ratings companies, such as A.M. Best and Weiss Ratings?
  Good financial strength ratings show a company's ability to pay claims — including your death claim for your family.

• Customer satisfaction rating?
  Helpful customer service representatives will make your family's interaction with the company as easy as possible.

• How fast do they pay claims?
  Quickly paid life insurance claims are vital for families who have bills to pay immediately.

• What is the company's history? How long has it been in business? What's its reputation?
  A company's longevity and stability are excellent indicators that you can count on it to fulfill its obligations to your family. And a company that cares about and gives back to the community is another way it shows how it will care about you and your family.

A licensed insurance agent can answer your questions about life insurance that can help give you and your family peace of mind.