Are You Protected By A Life Insurance Policy?

A look at life insurance and what it means to you.

You’re healthy, you’re fit -- you don’t need life insurance, right? Wrong! If you have people who depend on you financially, you need life insurance no matter how fit and healthy you may be.

What would your family do if something were to suddenly happen to you? Where would they turn to for financial relief? You wouldn’t be there to support them anymore. In addition to having to deal with the loss of you, they’ll suddenly have to deal with the loss of your income -- unless you have life insurance.

It’s Not For You, It’s For Them

The first thing to understand is life insurance isn’t about you, it’s about the ones you leave behind. If you want to protect your family financially, life insurance is your best bet.

So now that you understand how important life insurance is, it’s time you understand exactly what life insurance does.

Understanding Life Insurance

When you take out a life insurance policy, you take it out for a certain dollar amount. This dollar amount is the amount of money your beneficiaries will be paid should something happen to you. So for example, if you take out a $100,000 life insurance policy, your family would receive $100,000 if you were to pass away in a covered event.

The Different Types of Life Insurance Policies

There are two main types of life insurance policies -- whole life and term life.

With a whole life policy, you pay a monthly premium and your life insurance policy builds a cash value in addition to providing a lump-sum death benefit. This type of policy is usually renewable throughout your entire life. With a term policy, no cash value is built and the life insurance policy is usually not renewable past age 75.

Which policy you choose will depend on your personal preferences and how much of a monthly premium you want to pay. Term life policies are usually much more affordable than whole life policies.

The Application Process

Once you decide which type of life insurance policy you want, you’ll need to apply for the policy. This may include having a physical exam depending on how much money your life insurance policy is covering you for. If a physical exam is required, it may extend the application process by a few weeks.

When purchasing life insurance, it’s important no to look at it as just another monthly bill. Life insurance is an investment in the protection of your family’s future.

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