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Life Insurance

Overview

Obtaining good life insurance gives you the ability to pass on wealth to others when you pass away. It also can enable your loved ones to maintain their standard of living for a period of time. This kind of coverage can be put to use for almost any purpose and, often times, the money is even tax-free.

Life insurance may be obtained for an individual or for a group, such as a whole family. If one or more policyholders die, a specified amount of funds is released and provided to the named beneficiary or beneficiaries.

How it Operates

Insurance that is bought on the life of an individual is purchased for a specified amount. For example, two spouses may purchase a $50,000 policy on each other and then the requisite monthly payments are made. Should one or the other spouse die, the payout of $50,000 goes to the surviving spouse.

Anyone can purchase life insurance for themselves and for their family members. A business can also obtain policy coverage to protect itself if an important key leader should die. This protection can ensure the business goes on regardless of such a loss, and any inherent consequences due to said loss.

Types of Coverage 

The following are the most common types of coverage:

Whole life is a type of comprehensive life insurance coverage which can last an entire lifetime. Policyholders pay their premiums, which are determined from a litany of health questions and the amount of coverage desired. Another popular option is term insurance, which only provides coverage for a set term, or period of time. For example, should you have a 15-year term insurance policy, you will be covered for 15 years. However, after that period ends, you must purchase new coverage. Universal life offers similar coverage to whole life. However, there is also the option of investing some of the

Another popular option is term insurance, which only provides coverage for a set term, or period of time. For example, should you have a 15-year term insurance policy, you will be covered for 15 years. However, after that period ends, you must purchase new coverage. Universal life offers similar coverage to whole life. However, there is also the option of investing some of the

Universal life offers similar coverage to whole life. However, there is also the option of investing some of the premiums to build value. This may notably increase the benefit amount should the investment strategy turn out well.

Benefits

Life insurance is an excellent method of providing for a family if the breadwinner should pass away unexpectedly. It can assist in covering the expense of medical bills, funeral expenses, living expenses while the children are still at home, help pay off debt and to even leave an inheritance. Most people consider it both loving and responsible to provide for their family’s future with life insurance.






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