Life insurance is pretty simple.
If you’re protected and you pass away, your beneficiaries receive a cash benefit. They can use this for just about anything—paying off debts, replacing income that you’re no longer providing and of course, medical and funeral expenses.
Now that you understand life insurance,
let’s take a look at two basic kinds of life insurance.
1 Term Life Insurance:
This coverage lasts for a “term” you choose, usually 10, 15, 20, or 30 years. During that time, your premiums are guaranteed not to increase. If you pass away during that time period, your beneficiaries get a cash death benefit. If you live longer than the term period, you have the option to continue coverage for an annual, renewable premium, which is generally much higher. You can usually convert a term policy to a permanent one without getting a new medical exam.
2. Permanent Life Insurance:
There are two big ways that permanent is different from term. First, the policy is meant to last the rest of your life (as long as you make the required premium payments, of course). Second, part of the money you pay in is set aside in an account where it can grow cash value that you can tap into later on. There are several types of permanent life insurance, each with different advantages.
We have a Life Insurance Spoecialist in out office that can sit down with you and give you all the information you need to make an informed decision on a policy. We can even look at what you have right now and explain what it all means. As always, please give me a call if you have any questions at 858-277-9511.