Everything You Need to Know About Life Insurance

Not many people want to take the time to seriously consider life insurance. Still, if you have someone who depends on you financially, it definitely warrants some consideration.

Today we will go over what you need to know about life insurance by answering a few of the more commonly asked questions as people search for the best coverage.

Is Life Insurance Worth It?

Life insurance is worth it because it offers financial security and peace of mind for those who depend on you financially. If you were to pass away and lose that income, it would put them in a tough situation.

With the right insurance policy, the insurance company will pay your loved ones with money from the policy when you pass to help cover daily expenses, mortgage payments or rent, outstanding debt, and other essential expenses.

What Coverage Does Life Insurance Offer?

A life insurance policy covers many essential living expenses, as already mentioned briefly above. The life insurance policy can help with immediate, ongoing, and future expenses.

It can help pay funeral and burial costs and take care of any uncovered medical expenses. It can continue to help pay for food, housing, and utilities and help cover college tuition expenses and even retirement.

Types of Life Insurance

Life insurance policies typically fall into two categories: term life insurance and permanent life insurance.

With term life insurance, there is protection for a specific period of time. This timeframe is usually 10, 20, or 30 years. This kind of policy makes the most sense if you need a certain amount of protection for a specific timeframe. It also comes with a lower initial premium, which is good for those who may have a tighter budget.

Permanent life insurance policies continue to offer protection as long as you pay the premiums on the policy. The policy begins to accumulate cash value on a tax-deferred basis. You can then use this money to supplement your retirement income, purchase a home, or add to your emergency fund.

However, the premiums for this kind of policy are much higher, and you have the same amount of coverage as many term life insurance policies.

The Cost of Life Insurance

If you work for an employer that offers this valuable benefit to its employees, then you may see little to no out of pocket expense for the coverage. However, you can also lose it at any time, and it isn’t always the right amount of coverage needed.

So, if you choose to secure a life insurance policy independently or supplement the coverage offered by an employer, you will find that the price will depend on your age, health, and the type of policy you want to purchase.

There are policies available for people of any age and those who may have pre-existing medical conditions like high blood pressure, diabetes, and even smokers.

For help finding the best insurance policy, don’t hesitate to contact the experts at  National Insurance Partners today. They can help narrow down your options and ensure you find the best coverage for your current and future needs.

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