Life Insurance

Life Insurance Protects Your Family

Life insurance is designed to provide financial protection to those who depend on the paycheck of the policyholder should they pass away. If the death is considered premature, this coverage can provide a considerable amount of financial help to cover immediate expenses as a result of the death and a good portion of the future costs for the family. This insurance is vital for those who can no longer depend on the income once provided by the insured and now deceased person.

Compensation from this coverage can used for funeral costs, left-over debt and even for the planning of one’s estate. Those insured will usually pay a monthly amount, or premium, and in exchange the insurance provider pays out a specified amount should the policy be activated due to a policyholder’s passing. The individual to whom the money is directed is called “beneficiary.” This individual can decide how the money will be put to use. Alternatively, benefits may be left to a trust, which can then pay out according to terms previously agreed. One can learn the full responsibilities of the insurance company in going over the original policy contract in consultation with an insurance professional.

Those who are main breadwinners for families or who simply don’t have funds available to cover emergencies are particularly suited to these kinds of insurance policies. Normally, if a family is dependent upon the salary of a breadwinner, this kind of coverage can provide a terrific sense of safety and security and the whole family can rest assured in the knowledge that their financial future will be assured. Not only can this coverage help families handle long-term responsibilities like a mortgage or other kinds of payments, but it can also assist with the payment of medical and funeral expenses.

There are a few kinds of policies made available. Whole life is a common choice. In this case, policyholders pay a monthly premium after answering a sometimes long list of health questions. This and the level of coverage desired determine the cost. If the policyholder pays premiums consistently and on time, the policy will remain in effect. Term insurance is a bit different in that it provides coverage for  a set length of time; a 15-year term insurance policy is common and means that you’re protected for that length of time. Keep in mind that you must buy new coverage after the term is expired. Universal life provides coverage not too different from whole life, but there is also an option of investing a portion of the monthly premium.  If skillfully done, it can mean an increase to the benefit amount over time that accrues more quickly.

Another great benefit of good life insurance is that a policyholder can take a loan out against certain of these policies or even cash them out altogether. And there are no penalties or required minimum amounts to access the accumulated cash value.

In the end, the variety of life insurance options means that a policyholder can put together the perfect plan for helping to provide a financial cushion for loved ones after his or her passing.