We all know we need it, but the topic of life insurance isn’t a favorable one. No one wants to discuss their own mortality. It’s a sobering subject. However, it’s important for the loved ones you leave behind that you do have a solid insurance plan in place for when that inevitable time does come.
Your life insurance policy is an important financial asset for your loved ones. Not only will it cover the costs of funeral and burial expenses, but depending on your particular policy, it can also provide funds to your dependents to help sustain them in the future.
Similar to auto and health insurance, life insurance has its own set of rules and regulations. It’s best to discuss the details with your immediate family so that everyone understands the terms and conditions of your policy before the time comes to use it.
Here’s a brief overview of some life insurance terms you need to know:
* The beneficiary is the person who will receive the proceeds from your life insurance policy.
* The death benefit is the sum of money your beneficiaries are entitled to upon your death.
* Term life insurance coverage is often the most affordable option to purchase because it only provides a death benefit during a set number of years, usually 20 or 30.
* Whole life insurance offers fixed premium amounts for the life of the policy and a set minimum death benefit.
* Universal life insurance is a life insurance policy with variable premium amounts based on an individual’s cost to insure.
Paying the high costs of one’s final expenses, which today can average more than $10,000, is a huge burden for families. Be prepared with the appropriate life insurance policy for you and your family. No matter what form of life insurance you are considering, our Florida independent insurance agents are here to find you affordable coverage that meets your needs. Contact us today.