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Life insurance will offer a financial safety net for your loved ones in the instance that you happen to die unexpectedly. When you die while covered by a life insurance policy, your beneficiaries are granted a large sum of money to replace your income and pay for other expenses, such as end-of-life medical bills and funerals. To find out if you need life insurance, keep reading.
What Is Life Insurance?
Life insurance is a type of insurance policy that provides policyholders with coverage that protects their loved ones if the covered person dies. There are two types of life insurance; term life insurance and permanent life insurance. While term life plans only cover you for a set period of time, permanent plans actually last for your entire life.
Though, in order to maintain coverage with either plan, you will need to pay your premiums on time. If you don’t, you risk your coverage lapsing. When someone’s coverage lapses and they die, no benefits will be dispersed to the family.
What Is a Death Benefit?
The death benefit is the lump sum payment made to the life insurance policyholder’s beneficiaries. Insurance companies determine what death benefits you are eligible for by assessing your health through a medical exam and asking you questions that can help them identify your risk level.
Death benefits are usually in the range of $50,000 to $100,000, but some policies offer up to a million dollars in benefits. In rare cases, your policy could be worth even more.
Who Needs Life Insurance?
If something were to happen to you, would your loved ones be able to continue living at a comfortable standard of living? Ask yourself this question when you consider whether or not you need life insurance. In most cases, younger people may not need life insurance because they don’t have families to support. But once you get older and have people who rely on you for their survival, things get a little trickier.
Life insurance offers a safety net that ensures your family won’t suffer unnecessarily if you die. This peace of mind has significant value to many, encouraging them to purchase life insurance.
Sometimes people won’t need life insurance, even if they have many people depending on them. For example, if you have already paid off your home and have significant assets saved up, a life insurance policy may not be necessary. Speak to an insurance agent to get more details regarding who needs life insurance.
Start Shopping For Life Insurance
Life insurance can give you and your family peace of mind. Don’t wait to purchase a plan. Our insurance team at Insured For Life will guide you through the process of signing up, completing your medical exam, and choosing coverage. To get started with a free quote, give us a call at 1-888-989-0079.
