Affordable Life Insurance Protection for Your Family
If you are considering the purchase of a life insurance policy, you may be wondering who actually benefits from life insurance.
There are two parties that benefit from a life insurance policy.
You benefit as the insured of the life insurance policy with Peace of Mind knowing your loved ones will have financial security as a result of receiving the death benefit payout from your life insurance policy upon your death.
Your beneficiary or beneficiaries will benefit from your life insurance as a result of receiving the proceeds from your life insurance plan upon your passing.
The Owner / Insured
The Insured may or may not be the owner of the life insurance policy. The owner is responsible for paying the premiums to the insurance company. The owner also selects the beneficiary of the insurance policy.
Your Life Insurance Beneficiary
Your beneficiary receives the proceeds of your life insurance policy upon your death. The beneficiary you name may be a person, your estate or a business or organization.
When you select a beneficiary, you should provide the complete name of the person and state clearly the amount or percentage of the proceeds the person is to receive from your life insurance policy.
Some states do have restrictions as to who may be named your beneficiary on a life insurance policy. There are states that require you leave the proceeds to a relative if you are choosing an individual.
Also, if you are choosing a minor as beneficiary, a guardian must be assigned to oversee/supervise the proceeds of the life insurance policy, and the spending of those proceeds until the minor named beneficiary reaches the age of adulthood.
Key Benefits of Life Insurance
Peace of Mind
Peace of mind is one major benefit of owning a life insurance policy. While there are many reasons why someone might choose to purchase life insurance protection, Peace of Mind is the comfort of knowing you have provided for the future financial security of your loved ones should you die.
Financial Benefits of Life Insurance
When you buy a life insurance policy, it’ll cover your dependents’ future and standard of living, too.
Many people choose to buy up to 10-20 times their annual income in life insurance to ensure their beneficiaries are protected financially for the long term.
Because a life insurance benefit is a tax-free lump sum of money, your family can use the cash however they wish, including:
Do I Need Life Insurance?
If anyone depends on you for some means of financial support (such as your spouse, child, or a business partner), you may need life insurance. The same is true even if you’re not the primary income earner for your family. Stay-at-home parents and care givers provide important services that would require hiring someone to provide those services if you were to pass away.
What are the Pros and Cons of Owning Life Insurance Protection?
The main benefit of life insurance is financial protection for your loved ones when you die. However, you do have to pay insurance premiums on a regular basis for this Peace of Mind, which can be costly if you have health issues, or when buying a life insurance policy when you are older.
What Does Life Insurance Cover?
Life insurance covers almost every type of death – from accidental death to death resulting from natural causes. As long as you’re honest about your health, lifestyle and hobbies when you apply for a policy, and you pay your premiums on time, your family should be covered if something happens to you that results in your death. Some life insurance policies even pay out an accelerated death benefit before you die, to help cover the costs related to your end-of-life care.
Life Insurance Quotes
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