Many people find it uncomfortable to talk about life insurance. But ensuring that your family is cared for adequately should something happen to you is important. And while life insurance is not necessary in every situation, those with dependents in their household should absolutely consider this option for their family.
Life insurance is an effective way to proactively protect your loved ones. Educating yourself as to the various options can be a little overwhelming, which is why speaking with a local insurance broker is a great way to begin. We are a valuable resource, so call us and put our expertise to use for you. In the meantime, here are some important life insurance facts you may want to know.
There are hundreds of insurance providers which offer policies for your family, and each of them represents a myriad of options, plans and possibilities. Taking the time to understand the nuances of each plan may ensure safety and security in the future. Be sure to not only look for the best prices, but for the best plans for your family. You can then ask about discounts which may apply for your particular situation.
Types of Available Insurance
There are two main types of life insurance available to you.
Whole insurance: Whole life policies are also referred to as “straight life” or “ordinary life” policies. A whole life policy remains in place for the insured’s lifetime or until the stated maturity date, as long as the premiums are kept up to date. As long as all insurance contract terms are met, the provider will pay the death benefit to the policy holder’s beneficiaries when the insured dies. Whole life premiums are typically more expensive than those of term life policies, defined below.
Term life: Term life policies offer coverage which is paid for with fixed rate payments for a set period of time. After the term expires, the policy holder will choose to give up their coverage or obtain additional coverage with different payments, terms and conditions. If the policy holder passes away during the term of the policy, the benefit will be remitted to the beneficiary. Term life is considered the most affordable way to acquire an adequate death benefit over a specific period of time. Many people choose term life to cover a period of time until dependents leave the home.
Fast Facts: If you choose a whole life policy, any partial withdrawals or loans you make on the policy will decrease the total death benefit. There can be negative tax implications to premature withdrawals, so prepare for a sizable tax bill if you choose to do so.
Financial experts suggest that policy holders assess life insurance coverage every two to three years; or whenever the insured has experienced a significant life event, such as the birth of a child, the receipt of a large inheritance, or the acquisition of a new home. If your life circumstances do change, you can simply consult with your insurance provider about attaching a rider, expanding or adjusting coverage without forfeiting the accrued cash value. of the policy
If you live in the Port Charlotte area and are considering a life insurance policy to protect your family, call Ezzi Insurance Advisors. We will provide the information and advice you need to make the right choice for your family.
