How many people actually take a moment to ponder what life could be like for their family if they should die unexpectantly? It is, certainly, not the most pleasant of subjects to think about and, for many, the idea of death can seem either remote or so very much in the distant future that it’s completely out of mind. However, the brutal truth is that a tragic and life-changing event can strike at any time and in any place. It is therefore a good idea to prepare one’s finances so that loved ones can have peace of mind in knowing that, should a breadwinner pass away, the survivors can be protected from potential financial adversity. However, there is hope in the form of an insurance product, aptly titled “life” insurance, for indeed it is engineered for those who live on in the aftermath of such a tragedy. Understanding the general concept behind this coverage, the variations of it, and how they operate, is important so you can purchase a plan that meets the needs of a family, both now and in the future.
Good life insurance pays out to named beneficiaries who are selected by the policyholder, obviously decided upon prior to his or her passing away. Not each and every one of the financial challenges that are a result of a policyholder’s death will be covered by these insurance products. It is crucial to understand the instances in which the beneficiary will not enjoy policy benefits. Outside of naming your beneficiary or beneficiaries, you will also decide upon the type of benefits and/or coverage amounts. Keep in mind that the more extravagant the benefits chosen are, the costlier the premiums will be. The expense of one’s coverage comes down to several factors, such as a policyholder’s age, his or her general health when making the application, risk factors in the realm of lifestyle choices, and the coverage term length. Understand that the length of a term can last up to 30 years and, not surprisingly, these kinds of time-limited plans are known as “term life” policies. Other kinds of plans extended to policyholders include lifelong coverage, which is known as “whole” or “universal” life insurance policies. The last option will normally have a helpful feature that enables the policy to accumulate money over time in an account that bears interest and grows, potentially robustly, over one’s lifetime.
With good life insurance, one’s family can file a claim in the immediate aftermath of the policyholder’s death. Depending on the insurance company, one’s beneficiaries can be the recipients of a lump sum of cash within seven or so days after the policyholder’s death. These funds are commonly utilized to cover various funeral or burial costs. Other dollar amounts received as a result of coverage can be put to use in a myriad of ways to aid the plan holder’s loved ones in getting by financially. One tactic to achieve this is to utilize the funds to pay off debts, such as a home mortgage and our credit card balances. This often will lead to the family living more comfortably as time goes on and also provides some breathing space so that former dependents can learn to become more self-sufficient. Another approach is to invest the money so that it eventually can offer passive income that can significantly supplement whatever funds the family members will be, on their own, contributing to the whole. Before buying such a plan, it is smart to analyze a family’s financial needs to figure out the most sensible way for them to utilize whatever are the proceeds within the context of the plan chosen.
Life Insurance Policies we offer:
– Whole Life
– Term Life
– Universal Life
– Indexed Universal Life
– Guaranteed Universal Life
