How Does Life Insurance Help You?
There are many ways a life insurance policy can assist you and your loved ones.
Depending on the type of life insurance you purchase, you may build up cash value inside your policy from which you can take a loan in the future, if needed.
In addition, the proceeds from your life insurance death benefit paid out to your beneficiaries can be used by them for any purpose.
So, the proceeds of your life insurance can help to pay for your family’s living expenses, replace your income, pay off the mortgage loan, pay off credit card debt, pay for your child’s college education, provide for your spouse’s retirement, and allow your loved ones to maintain the lifestyle they enjoyed while you were alive and providing for them.
Life insurance can help to guarantee your family’s future is financially secure should you pass away unexpectedly.
How Life Insurance Helps You
It gives you the peace of mind knowing you have provided for the financial security of your family’s future.
How Life Insurance Helps Your Loved Ones
Life insurance provides a lump sum payout to your beneficiary or beneficiaries upon your (the insured’s) death. These proceeds are usually paid free from any federal income tax.
Your beneficiary can use the money for any purpose, including:
The death benefits are guaranteed to be paid out if the insured person dies from a covered cause of death while the life insurance policy is "In Force".
Types of Life Insurance
There are two basic types of life insurance coverage you can purchase: Term and Permanent.
Permanent life insurance provides protection for your entire life while term life insurance lasts for a certain number of years to meet your specific needs.
Benefits of Permanent Life Insurance
Permanent or whole life insurance provides guaranteed lifetime coverage as long as your premiums are paid on time.
These plans can build cash value inside the policy from which you may take a loan. The rate remains level for the entire life of your policy. These policies cost a lot more than term life insurance because they last longer and build cash value.
Benefits of Term Life Insurance
Term insurance is low cost, flexible and easy-to-understand.
Term life policies are the most affordable plans available for a period of 30 years or less. There is no investment feature to these policies, they do not have any cash value and no loan can be taken from this type of life insurance.