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Life Insurance

LIFE Insurance – Customer-friendly – Rob Hill

Preparing for the end of life can be difficult to do. However, death is an inevitability for everyone, and it must be planned for. More than that, you never know when the end will arrive, so it is important to plan for death sooner rather than later. When you pass, your loved ones will no longer have access to the income that you currently provide and that they depend on. Buying life insurance is one of the most important steps most people can take to protect their loved ones from financial hardship as a result of their death.

With life coverage, the insurance company will pay death benefits to your loved ones. There may be specific events that the insurance company will not pay out on, such as suicide. Therefore, carefully read through the terms of the policy so that you are fully aware of the coverage limitations before you purchase your policy. In many cases, this type of coverage is used to provide a spouse and dependents with cash to pay off debts or to supplement lost wages after a death. The benefits can also be used to pay funeral expenses, send kids to school, provide a legacy and more.

There are multiple types of life coverage, and the two primary options are term and whole life. With a term policy, the coverage remains in place only until the end of the term is reached. Common term lengths are 15, 20 and 30 years. At the end of the term, the coverage ceases, and no benefits are available. Whole life is a more expensive option, but it can last throughout your life as long as you continue to pay the premiums. A portion of the payments will accumulate in a cash value fund, and you can tap into this cash value if needed.

While buying life insurance is important, many people are not certain how much coverage they actually need or which type of coverage to purchase. Your financial needs as well as your budget can guide you in this decision-making process. A trustworthy insurance agent can also be beneficial as you make your decision.






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