Nobody wants to think about death, but it is an inevitability that cannot be ignored. Know that your family and loved ones are protected by securing life insurance coverage that suits your lifestyle and needs. Life insurance policies protect your loved ones from financial impacts in the event of death.
Who Needs Life Insurance?
The answer is simple
In short, everyone can benefit from life insurance.
If you have a family, partner or other individual who depends on you financially, you should probably have life insurance. Life insurance helps to cover the financial burden of debts, mortgages, loans and other costs your next of kin may be liable for paying. Even if you don’t have a large sum of debt, life insurance is a sort of financial gift to those you leave behind, allowing them the opportunity to enjoy the money or invest it in their future.
Those who have no dependents, children or others that rely on your income should still consider a life insurance policy – at the very least to cover the costs of a funeral or memorial.
How Does Life Insurance Work?
The policy holder pays a regular premium (usually monthly or annually) to their insurer. In the event of the policy holder’s death, the beneficiaries (family members or dependents designated by the policy holder) are paid the benefit, a sum of money dictated by the policy that was purchased.
Life Insurance Choices
When it comes to purchasing life insurance coverage, there are a number of options to choose from. The two most common forms of life insurance are term life insurance and permanent life insurance.
Term Life Insurance
Term life insurance is a form of temporary life insurance that is established for a set amount of time – usually 10, 20, or 30 years. In the event of death, a predetermine amount is paid out to the beneficiary. While the premiums paid into these sorts of policies are nonrefundable, they are generally low and do not change from year-to-year.
Permanent Life Insurance
Permanent life insurance offers lifelong protection and remains active as long as premiums are paid. These policies can accumulate cash value over time, meaning that the benefit grows. Unlike term life insurance, permanent life insurance does not expire. As such, the premiums tend to be higher.
Chat With A Broker
Not sure the best life insurance policy to suit your needs? Our experienced brokers are more than happy to help you determine what type of policy is best for you and your family. Contact Capital Insurance Brokers today!