When you’re truly protected, life is always an adventure

Life Insurance

Life Insurance
What It Is

Life insurance is monetary protection to cover those that depend on the paycheck of the insured person should they die. If the death occurs prematurely, this insurance will provide a considerable amount of funds to cover immediate expenses due to the death and a large amount of expenses going forward for the family now that the income provided by the insured person is no longer available.

Who It’s For

This insurance type is for anyone that provides the vast majority of the household income and has a family of two people or larger. This is especially true for anyone that feels as though they might not be around for many more years. Those that are single or provide less than 50 percent of their total household income don’t necessarily need to purchase this insurance. Calculate how much a funeral would cost and look at the total expenses of the household for a period of three to four months. If those in the household wouldn’t be able to cover all or most of these associated costs, it may be beneficial to purchase some insurance.

How It Works

There are three types of life insurance, term life, whole life and universal life. For each type, the insured person pays a monthly premium to receive the insurance. With term life, the insured person purchases coverage that lasts for 10, 20 or 30 years. If the person dies within this time period, the family will receive the amount specified. With whole life, there is no set limit for coverage. This insurance provides a cash account that builds over time. Universal life is permanent insurance that takes the premiums paid for the insurance and applies it to the cash value of the policy.

Major Benefits

The primary benefit of this insurance is that it provides for a persons family even when they are gone, typically covering everything from funeral and medical expenses, to ongoing income to replace the income of the insured person. No matter the policy chosen, the money received is tax free.