Life

Life Insurance

Life insurance is a contract where an insurer pays a beneficiary a sum of money, called a “death benefit,” after the insured person’s death, typically in exchange for a monthly payment called a “premium”. It provides financial protection for your loved ones after you’re gone to help cover expenses like funeral costs, living expenses, bills, education even gaps not covered by Medicare Services. Life Insurance is an important part of comprehensive financial planning, alongside other coverage options like Medicare, Obamacare plans, and Short Term Medical Products.

There are two main types: term life insurance, which covers a specific period, and permanent life insurance, which provides lifelong coverage and includes a cash value component.  

How Life Insurance Works:

1. The Contract: You, the policyholder, enter a contract with an insurance company.
2. Premiums: You pay regular payments (premiums) to the insurer.
3. Death Benefit: When the insured person dies, the insurer pays a specified amount of money (the death benefit) to your named beneficiary or beneficiaries.
4. Application Process: Before issuing a policy, the insurer will review your application and may require a medical exam to determine your eligibility and premium cost.

Types of Life Insurance

  • Term Life Insurance:

  • Provides coverage for a specific period (a term).
  • Has lower premiums compared to permanent life insurance.
  • No cash value; if you outlive the policy term, it expires with no refund of premiums.

  • Permanent Life Insurance:

  • Provides lifelong coverage.
  • Includes a cash value component that grows over time, often tax-deferred.
  • You can typically withdraw or borrow against the cash value.
  • Higher premiums than term life due to the savings feature and longer coverage.

Key Benefits

  • Financial Security: 

Provides a financial safety net for your family to cover daily expenses, debts, and future costs like college tuition after you pass. 

  • Estate Planning: 

Can be used to leave an inheritance for heirs or help pay estate or inheritance taxes. 

When choosing Life Insurance, it is important to consider the coverage options available in your state, including FL, LA, AL, NC, SC, and TX, and how it fits alongside dental, vision, and other insurance needs.