What is Life Insurance and should you buy?
Life insurance is a contract between you and a life insurance company. You agree to pay for the policy on a regular basis, and the insurer agrees to pay a sum of money to your beneficiaries if you die.
Once you have coverage, new health problems or habits can’t change your rate.
Solution Benefits
A designate beneficiaries will receive the life insurance payout upon death of the insured. This can go toward funeral expenses, mortgage payments or anything else.
In addition to the death benefit, life insurance can provide:
- Peace of mind – When you die, your family will be devastated. Their lives will never “get back to normal.” But you can feel confident that financial trouble won’t make matters worse.
- Living benefits – There are add-on options (riders) that may make it possible for your policy to give you money before you die. Some examples include situations where you become disabled, need long-term medical care, or receive a terminal illness diagnosis.
- Cash value – Permanent life insurance policies accumulate cash value that you can access for any reason you choose.
It’s important to tell your beneficiaries that your life insurance exists and with which company.
Kinds and Coverage
- Term Life Insurance
This is a simple and typically less expensive option to permanent. You pick a benefit amount and how long you’d like to be covered
- Permanent Life Insurance
Usually provides life long financial protection. As long as you pay the premiums: 1) Whole Life, 2) Universal Life, and 3) second-to-die or Survivorship life
- your policy will never expire and
- your beneficiaries are guaranteed to receive the death benefit (federal income-tax-free in almost all cases!
Your personal situation is your determining factor of amounts needed for coverage. It is your goal in this to make sure you are a blessing to your family and not a hindrance to come.
