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 why you should have a life insurance policy in place. You never know when you might pass away, and if you don’t have a policy at that time then it is too late.
What is a Life Insurance Policy?
Basically, life insurance is insurance on your life. But instead of providing benefits to you, the benefits go to your family or beneficiary after your death. The purpose is to provide financial support in order to pay for your burial, medical expenses, or other costs you leave behind. And if anything remains, then the family can use that money 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 behind struggling to handle financial issues. Even if you do not have blood relatives in your life, you can have a policy so that anyone who cares about you can receive the benefits. A spouse, a child, a parent, or even a friend can be a beneficiary.
A life insurance policy provides money when you die. However, the money can only be claimed by a person who is named as a beneficiary on the policy. That is why it is 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 can use the money while they are still alive. But the amount will be subtracted from the death benefit. Also keep in mind that some of these policies refuse to pay in the event of suicide. There may be other exclusions as well, so check before buying a policy.
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 the period, then the policy pays out. If you don’t, the policy expires and you have no coverage. Permanent coverage remains active as long as you pay the premiums.