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Life Insurance

The Benefits of Life Insurance

No one enjoys thinking about their own death. And no one enjoys discussing it either. Losing a loved one hurts, and it’s worse if funeral expenses, unpaid debt and the prospect of little to no income is looming. Life insurance can lighten the load for family members.

Life insurance pays money to your spouse, parents, children or beneficiary when you die. You designate who gets the death benefit and how much. Your beneficiary can use the money for funeral expenses or however they want.

You must decide how much coverage you want, and who you want as the beneficiary. And you also pay a premium, which may be paid monthly, quarterly or annually. The premium is based on the amount of the benefit, how often you pay and the type of insurance you purchase.

Whole life lasts for the durations of your life, as long as you pay the premiums. It never expires. In addition to the benefit, it has a cash value that you can borrow against. If you borrow, then you can pay it back or have it taken out of the policy vale. Just keep in mind that if you don’t pay it back, the value of your coverage decreases.

Term life is a popular option, but it expires at a certain time. When the term is up, you purchase a new policy that is typically higher because you’re older. But term life also expires when you reach a certain age and cannot be renewed. If you live past that date, then you’ll no longer have coverage.

Universal life is a combination of term and whole life insurance. It is flexible, and gives you the ability to adjust the term, premium, death benefit and cash value as you see fit.

Life insurance can make things easier for your loved ones. If you haven’t already, consider getting a policy for the sake of your family.