A Primer on Life Insurance: What It Is and How It Can Benefit You
What is life insurance? It’s one of those things you might know about, but probably don’t understand all that well. Is it something you need? Does everyone need it? Is it the same thing as other kinds of insurance? Do you buy it once and then forget about it forever, or do you have to keep paying premiums every year like your car insurance? What happens when your loved ones can no longer afford the premiums?
Basic understanding
Life insurance is a general term for any policy that can pay out a sum of money if you die while it is active. Policies are typically purchased as an investment, so life insurance will help replace income after the death of the insured person. This can also serve as an estate-planning tool to minimize taxes due to passing assets in other ways. Different types of life insurance policies include whole life, universal life, variable annuities and traditional savings annuities. A Primer on Life Insurance: What It Is and How It Can Benefit You Life insurance is a general term for any policy that can pay out a sum of money if you die while it is active. Life insurance will help replace income after the death of the insured person. A life insurance policy may also be used as an estate planning tool to minimize taxes due to passing assets in other ways. There are many different types of life insurance policies including whole life, universal life, variable annuities and traditional savings annuities.
Why should you buy it?
We're all given a few hours each day to live. Of course, we all want to spend these hours doing what we enjoy. But what if you were in an accident and couldn't do that anymore? Who would take care of your family when they needed it the most? Fortunately, there are affordable life insurance policies that can protect you and your loved ones from such an unfortunate event. Life insurance is designed to pay out a sum of money to those designated in your policy if something happens to you. If you need assistance calculating how much coverage is right for you, contact our agents today by phone or email. They'll work with your budget so you get the amount of life insurance protection that's appropriate for your needs. Life insurance actually protects your family financially in case something happens to you. Life insurance is designed to provide income for those who depend on you, should something unexpected happen to you. Without it, your family would have to scramble for cash in order to keep up with their bills and day-to-day expenses. This is why so many people consider life insurance coverage essential—and why your friends and family may be angry at you if they learn that you don't have any yet. Fortunately, there are a number of affordable options available if you know where to look (or if we help find one that's right for your situation). Keep in mind that not all life insurance policies are created equal; some offer a better value than others when it comes to price and coverage amount.
Who needs it?
For anyone who worries about the well-being of their loved ones in the event of their passing, life insurance is an invaluable resource. Life insurance ensures your family members can rely on financial support if you're no longer around. It can help to replace your income or fund education, too. If you're a parent of small children, then this is especially important since they will depend on you financially for years to come. But it's not just people with families that need life insurance coverage--those without children often buy this kind of policy as protection against sudden events like accidents or illness that could wipe out their savings and leave them with medical bills to be paid out-of-pocket for the rest of their lives. If you do decide to get life insurance coverage, there are a few different types available for you. There are actually two most common types of life insurance policies are term insurance and permanent insurance. Term insurance is exactly as it sounds--the policy lasts for a set period of time before it must be renewed or canceled. Permanent policies, or whole life insurance, lasts for your lifetime but typically has higher premiums than term policies because they're paid up front in one big sum with no renewals necessary. Whole life isn't necessarily better than term--sometimes people will buy permanent coverage early in their career when they have a lot of debt that will be paid off quickly after they've held their policy for 20-30 years while others may opt to stay with term until that point.
Where do I get it?
Today, life insurance is the most common form of death coverage. As such, a lot of people are interested in how it can help them and their families in the event of an untimely death. Below, we have outlined just some of the basics of life insurance. Read on to find out more about what it is and why it's so important! Who Needs Life Insurance? In short, if you're an adult with dependents (children or other family members who would require financial assistance), you should consider getting a life insurance policy. With this coverage in place, your dependents will be financially cared for following your death until they are no longer eligible for coverage under that plan. If you're wondering where to get life insurance, don't worry! There are many options available. Depending on your situation, your best bet may be to work with a broker or life insurance agent who can help you find a suitable policy. If you'd prefer to shop around on your own, check out our comparison tool here. Also, if you're young, you may be eligible to take out a term life insurance policy. Term life insurance is extremely affordable, but it provides coverage for a limited amount of time. This makes it ideal for those in their 20s or 30s who don't have many dependents or a substantial sum of money saved up. Keep in mind that once you reach about 50 years old, however, term life insurance premiums tend to skyrocket, making other options like permanent or whole life more affordable.
How much do I need?
Life insurance is a financial product that, in exchange for a periodic payment of an agreed-upon sum, promises to cover various costs incurred due to the insured individual's death or permanent disability. The right life insurance coverage may be different for each person. To figure out how much life insurance you need, you will need to do some calculations that answer these questions: Who needs life insurance?; How much should I buy?; What should my policy cost?; and Do I want cash value or term life insurance?
