page loader

Life Insurance

The Value of Life Insurance

Most events that require planning are filled with joy and excitement. The purchase of a new home, celebrating a marriage, the birth of a baby, and savings for your children’s college education are all occasions that require forethought. But what about planning for events that could merely lessen the hardship of a devastating situation?

Life insurance is vital when an unexpected tragedy occurs. In addition to the sorrow in dealing with a loved one’s death, family members are often burdened with funeral costs, medical bills, and other debts. It’s important to ask yourself the question, “”If I were to die today, what resources would my family need?”” Unfortunately, many neglect to purchase this type of insurance, leaving their families financially exposed.

This type of insurance is merely a contract with an insurance company in which the buyer makes payments and the insurance company agrees to pay a sum of money to the client’s beneficiaries in the event of death. It can be beneficial for both the primary income earner in a family as well as a stay-at-home mother or father.

When researching insurance, it’s important to decide what type is appropriate for your family. Term and whole life are the two most common types customers select.

Term insurance is protection for a designated period of time such as 10 or 20 years. During the agreed upon period, premiums usually do not change. These premiums are determined after the health and well being of the client is determined. In the event of death, a predetermined contracted amount is paid to beneficiaries.

As it’s name indicates, whole life provides coverage for the entirety of the buyer’s life. Because of the longer coverage period, whole insurance is more expensive than term insurance. And unlike term insurance, whole life has a cash value.

If providing for your family is a priority now, it should continue to be a priority should death occur. Regardless of the type of insurance that fits your family’s needs, life insurance is imperative to ensure peace of mind for you and your loved ones in the wake of tragedy.

Life Insurance to Care for Your Loved Ones

Death requires planning. Before you die, you have to think about how your family will pay for your burial. You also have to consider the medical costs you might leave behind. Then, there’s the issue of your family surviving without your income. All of these things can be taken care of with life insurance. Having this coverage is like giving a gift to your loved ones.

The death of a loved one is always traumatic. It’s even worse when a mountain of bill pile up or there is no money for everyday expenses. Life insurance is a contract with an insurance company. It requires them to pay death benefits to your beneficiaries in the event of your death.

You must pay your premiums to keep the insurance active. It doesn’t matter if you have term life or whole life insurance, failing to pay premiums will cause the policy to lapse. Your premiums are determined based on your health and age.

It’s important to note the differences between term life and whole life insurance. Term life lasts for a specific period and then coverage ends. Whole life lasts for your entire life – no matter how old you are when you die. Whole insurance is typically more expensive than term insurance, but it provides cash value.

Life insurance makes things easier for your family. When you die, you know they will survive without struggling financially. The sooner you get life insurance the better. It is harder to get coverage when you reach a certain age or are sick.