Your death, whether sudden, unexpected or from old age, will leave a hole behind. The void will be not only personal, but also financial. Naturally, everyone wants to make it easier on those they love to cope with their loss. Life insurance is one of the best ways you can create stability for survivors after you die.
Life insurance provides a financial payout upon the death of the insured party. If the policy is in your name, it will pay upon your death.
When a payout occurs, a beneficiary whom you name in the policy will receive a financial settlement, which can help them cover essential costs. Therefore, you can use life insurance to shore up your survivors’ financial solvency following your passing.
The benefit might help survivors pay for:
The good news is, you can leave the money to almost anyone (including charities) and the money won’t go through probate. Therefore, your survivors will get a settlement before anyone else.
Everyone has different life insurance needs. Often, you’ll be able to choose between two types of plans.
Term plans last a set number of years. Coverage will issue payment if you die during the term.
Whole-life policies remain active indefinitely, as long as you pay your premiums. Many offer cash-accumulation and interest benefits.
When you choose a plan, you can name the sum you want to leave behind. Work with one of our agents to set up an appropriate framework for the use of the money. You might need to establish trusts or other beneficiary stipulations to govern payouts.
Don’t wait to get life insurance. It’s critical protection at any stage of life. However, the earlier you get a policy, the more beneficial you likely will find it.
The longer you keep coverage, the more chance you have to let your policy accumulate value.
Younger individuals often qualify for lower policy premiums.
What Does Life Insurance Do?
Suppose you carry a life insurance policy on yourself. In that case, you will designate a sum of money—a death benefit—that the insurance policy will provide to a designated beneficiary upon your death. A beneficiary is usually a family member, but you can choose any person, charity, business or trust. With access to life insurance funds, your beneficiary will be able to pick up the pieces of your loss and move on with their lives with fewer monetary troubles.
What Are the Three Main Types of Life Insurance?
The three most common types of life insurance are term life, whole life and universal life insurance.
Term life insurance provides a death benefit to your loved ones if you die during the policy’s term. This term might be a period of 10, 20, 30 or more years, depending on the policy’s expiration date. If you do not die during this time, then the policy does not pay. You will also have to reapply for a new policy if you want to continue to have coverage.
Whole life insurance lasts for the remainder of your life once you enroll. A policy won’t expire unless you stop paying for it. Additionally, these plans offer cash value investment opportunities. The cash value component can enable you to receive a source of income during your lifetime (in addition to the eventual death benefit).
Universal life insurance is a type of permanent insurance that combines term insurance with a savings component. Cash value grows tax-deferred and can be withdrawn or borrowed from the policy. It is more flexible than whole life insurance as it also allows you to change your premium payments and death benefit, within limits.
There are several varieties of life insurance available, each with its own features and benefits. Speak to one of our agents to learn more about which type of policy is best for your needs.
How Much Does Life Insurance Cost Per Month?
The amount of life insurance you need is entirely up to you. Additionally, life insurance premiums vary based on multiple risk factors like your age, income and other demographic factors. A common misconception is that people can’t afford life insurance due to a preexisting condition or work in a high-risk occupation. Our goal is to make life insurance affordable and attainable for everyone, no matter where they are in their life.
Even though life insurance might not come into play until after your death, it still provides a great service to your survivors. Don’t hesitate, therefore, to get covered. In the end, your personal insurance options will prove instrumental in protecting your overall wellness and solvency well into the future. Contact us today at 404-213-0007 to learn more about your options.