Life Insurance: Provide for Your Family when You’re Gone
The death of a loved one is a traumatic experience. And money is the last thing anyone wants to worry about during such a time. That’s why life insurance is like giving a gift to your family once you’re gone. The policy will pay a benefit to your beneficiary so that your family can handle their financial obligations.
Most people use life insurance to pay burial fees and final medical expenses. But depending on the size of your policy, the benefit can reach much farther. The money can buy a house, pay a mortgage, pay for a child’s education, and more.
Applying for a Policy
Buying life insurance is easier when you’re young and healthy. A young and healthy person is less of a risk for the insurer. You can still get coverage when you’re older and perhaps not in the best shape, but you’ll probably pay a higher cost. It’s because the older you are, the more of a risk you present for the insurer. This is why it’s a good idea to get life insurance when you’re young and in good shape.
Depending on your policy, it will remain active as long as you pay the premiums. But if you get term life insurance, it will expire at the end of a predetermined period. If you outlive the term, then you’ll have to get a new policy.
To avoid needing a new policy, you can choose a type of permanent life insurance. Whole life and universal life policies never expire. They remain active until your death, provided you pay the premiums.
Life Insurance Benefits
Providing for your family is the best thing about life insurance. They won’t have to struggle to survive once you’re no longer with them. And if you get a policy that gains cash value, you also can benefit from the policy while you’re still alive.