Who will take care of your loved ones if you die? Life insurance offers a way to provide for them in the case of your death. This policy is purchased by you while you are alive and you pay the premiums each month to ensure that your loved ones do not have as much financial stress after you are gone. A specific amount is paid out to your beneficiaries.
A beneficiary is a person that you name to receive the proceeds from your life insurance. You choose your own beneficiaries, whether you choose just one person or you choose a few that will divide the money. You lay out the details. For example, you can choose to leave the money to your spouse or you can have it divided between your children at an equal percentage. Life insurance can be purchased solely or you can add it as a policy supplement.
Two types of life insurance are available. Term insurance is valid for a certain amount of time, such as while you are working, etc. If you die during this time period, the coverage is paid to your beneficiaries. Cash or whole life insurance is valid as long as premiums are paid. It builds a cash value and can be borrowed against if it is essential. It works much like a savings account or investment.
Life insurance is not just for a particular set or group of people. It can be purchased by any person who has a beneficiary to name. If you have dependents, however, you want to be sure that you get life insurance, as it could be a financial issue if you pass away and your family has to do without your income.
By discussing life insurance with an agent, you can determine how much coverage that you need and which type of life insurance is the best choice for you. In addition, you can customize your policy according to your needs and your budget.
Life insurance is an important policy. If you have a family that depends upon you, you want to leave them this last gift that will allow them to focus on their healing, rather than their finances.