page loader

Life Insurance

Life Insurance Information

You probably care a great deal about the financial security of your family. And even when you die, you still want them to be financially stable. This is exactly why you should have life insurance. You never know when your last day will be, and if you don’t have a policy in place at that time, then it will be too late.

What is Life Insurance?

Basically, life insurance is insurance on your life. But instead of providing benefits to you, the benefits go to your family or another beneficiary after your death. The purpose is to provide financial support in order to pay for your funeral expenses, medical expenses, or other costs you leave behind.  And whatever remains afterward may then be used by your family for living expenses.

Why Should You Have a Policy?

Anyone with a family should have life insurance. You would not want to leave your family struggling to handle financial issues. But even if you do not have blood relatives, you can have the benefits go to anyone who you care about. A spouse, a child, a parent, a partner or even a friend can be a beneficiary.

A life insurance policy provides money after you die. However, the money can only be claimed by a ‘person who is named as a beneficiary on the policy. That’s why it’s important to decide who you want in charge of the money. You will not be around, so you must pick someone who you trust.

Some policies provide living benefits, which means the insured person may use the money while they are still alive. But the amount will be subtracted from the death benefit. Also, keep in mind that most policies refuse to pay in the event of suicide. There may be other exclusions as well, so check before buying a policy.

Policy Types

There is term life insurance and permanent life insurance. Term coverage provides coverage for a specific time, 30 years for example. If you die within that period, then the policy pays out. If you don’t, the policy expires and you have no coverage. Permanent coverage, or whole life, remains active for your entire life, as long as you pay the premiums. Many people use whole life as a savings vehicle.

Speaking with one of our life insurance professionals can help you determine which type of coverage would be best for you and your family.