LIFE INSURANCE

A contract between an insurance policy holder (you) and an insurer or assurer (the carrier provided the benefit), where the insurer promises to pay a designated beneficiary, a sum of money (the benefit) in exchange for a premium, upon the death of the insured person (often the policy holder).   Depending on the insurance policy, a terminal illness or critical illness can also trigger payment.  Other expenses, such as funeral expenses, can also be included in the benefits.  Life policies are legal contracts and the terms of the contract describe the limitations of the insured events.

The general rule is that if someone else relies on your income to live, then you probably need life insurance.  A Life Insurance policy does not need to be a part of every person's plan.  It can be useful, especially for parents of young children and those who support a spouse or a disabled adult or child. In addition life insurance can help provide immediate cash at death. Insurance proceeds are a handy source of cash to pay the deceased's debts, funeral expenses, and income or estate taxes. 

When you decide that you do need life insurance.  You need to figure out what type best fits you.  There are two major types of life insurance.  Term Insurance and Whole Life Insurance.  

 It pays only if death occurs during the term of the policy.  These types life policies usually last for a specific number of years (fixed period of time, like 10, 20 or 30 years).  If the insured does not die within the time frame specified in your policy, it expires with no payout.

Choose Term Life Insurance if you need to replace your income over a certain period, such as the years you’re raising children or paying off your mortgage (or) want the most affordable coverage. 

 Whole Life Insurance policies last your entire life and usually include a cash value component, which you can withdraw or borrow against while you’re still alive.  It will pay the death benefit whenever the insured passes away. 

Choose Whole Life Insurance if you have a lifelong dependent, such as a child or spouse with special needs (or) want to spend your retirement savings and still leave an inheritance or money for final expenses, such as funeral costs.

 Final expense insurance is designed to cover the bills that your family will face after your death. These costs can and may include medical bills and funeral expenses.  If you need financial protection and your age or health would disqualify you from getting traditional coverage, a final expense life insurance plan may be worth looking into.

Choose Final Expense Insurance because is best for seniors, it’s affordable, usually offers a no-medical exam qualification, and can help with planning certain aspects of their final arrangements (choosing a funeral home, flowers, music, etc.).  If you think you are in poor health (see doctor).