What Does Life Insurance Do?
If you provide financial security for a loved one, consider obtaining a life insurance policy. Life insurance can be an essential element of financial planning because it can help protect your dependents financially when you pass away.
How Long Is Life Insurance Good For?
The following are the two major categories of life insurance:
Term life insurance pays out only if the insured’s death occurs during the policy term, typically between one and 30 years.
Permanent life insurance typically pays a death benefit whenever the insured dies. It generally will not expire unless the policyholder stops making premium payments. Permanent life insurance may also offer a cash value element.
How Does Life Insurance Work?
Most people use life insurance to help support their loved ones financially after their death. A life insurance policy may provide a death benefit to one or more beneficiaries when the insured person dies in exchange for a monthly, quarterly or annual premium.
What Can Life Insurance Do?
There are many benefits to having a life insurance policy, some of which include the following:
- Life insurance may help provide financial security. If you have dependents who rely on your wages, life insurance may help replace the loss of your income when you pass away.
- Life insurance may help pay for a child’s education. A policy’s death benefit can be used to pay for a dependent’s education.
- Life insurance may help leave a charitable legacy. You may be able to choose a charity as a beneficiary to make a more significant gift than might otherwise be possible.
- Life insurance may help supplement retirement income. If you purchase permanent life insurance, you may be able to use the policy’s cash value for retirement income.
- Life insurance may help cover the cost of medical bills. If you pass away due to health-related issues, your life insurance policy could help your loved ones pay for accrued medical bills.
- Life insurance may help cover final expenses. Life insurance can help pay for expenses after death, such as cremation, burial and funeral services.
- Life insurance may help cover remaining debts. When you pass away, your debts most likely will not just disappear. In many cases, those debts may become the responsibility of your loved ones. Your life insurance may be able to help cover these payments.
How Do I Get Life Insurance?
Contact James V. Funaro Agency for more information about life insurance. We can help you get the coverage you need to protect yourself and your loved ones financially.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.