Life insurance is a policy you can purchase to provide a lump-sum cash benefit upon your death. Anyone who wants to plan for the cost of funeral or burial expenses should consider a life insurance policy. Some policies will also cover larger expenses, such as your mortgage or vehicle loans.
You will make payments on a life insurance policy to maintain coverage. These are known as premiums, and they generally must be paid to keep your policy active.
In some cases, policies that have accumulated cash value can use that to cover premium expenses. Generally, the younger and healthier you are when coverage starts, the lower your premium will be.
However, there are policies specifically designed for older adults or individuals with health conditions, so don’t let the fear of a high premium keep you from having adequate coverage.
There are two main types of life insurance: term and permanent. These offer different benefits to consumers and which one you choose will depend on your financial and estate planning goals.
These policies provide a death benefit for a set amount of time, known as the policy’s term. Common terms range from ten to 30 years. Term insurance premiums are more affordable than those for permanent policies, which allows purchasers to plan for the loss of income. These are great policies for covering financial obligations such as a mortgage so that beneficiaries will be able to maintain a consistent quality of life in the event of your death.
This category can be broken up into two types of policies – universal and whole life. Both can accumulate cash value over the life of the policy, leaving some people to use them as investment tools and not just insurance policies. Coverage for the Inevitable Life insurance is coverage for the inevitable – death. It can ensure that your loved ones aren’t left with unexpected funeral costs. In some cases, it can serve as a substitute for income that you would have earned, covering expenses like a mortgage, college, and car payments so your family can maintain their lifestyle even if you aren’t there to provide for them.
Secure the BEST