Understanding Life Insurance

Despite even the most meticulous preparations, life often includes many unexpected twists and unforeseen hardships. Among the most difficult of these situations is the death of a loved one. In the wake of someone’s passing, family members may face many issues, including financial burdens, such as funeral expenses, outstanding medical bills, remaining loans and reduced income. With these obstacles in mind, the right life insurance may one day prove to be one of the most important investments you ever make.

What Type of Life Insurance Is Right for Me?

Life insurance policies generally serve the primary purpose of providing financial assistance to beneficiaries following the death of an insured. However, there may be many customizable features, opportunities and details within these insurance products, and understanding your options is critical to ensuring family members are taken care of and cost-effectiveness is optimized.

Although there are many subsets of life insurance, policies can broadly be classified as one of the following:

• Term life—This type of life insurance lives up to its name by providing coverage for a predetermined amount of time, such as 10, 20 or 30 years. These policies typically include lower premiums due to their limited coverage period and may be suitable for those who want to ensure financial security for beneficiaries through a specific future date, such as when children reach adulthood or an outstanding loan would be paid off. In some cases, policyholders may have the opportunity to renew term life insurance or convert it into permanent life insurance, but this is not guaranteed.
• Permanent life—In contrast to term life insurance, permanent life policies establish ongoing coverage throughout the remainder of an insured’s lifespan. Regardless of when death occurs, beneficiaries may be eligible to receive a payout to ease their future financial burdens. These policies typically include higher premiums than term life insurance. However, in addition to lifelong coverage, permanent life insurance arrangements may double as savings opportunities. Many policies can accrue cash value over time, which can then be used to help pay for premiums, borrowed against or invested in various stocks and bonds.

As you attempt to secure your family’s financial interests, you should be meticulous in considering ideal life insurance. For example, if you have young children or many outstanding debts, you should generally secure more coverage to help beneficiaries manage these potential financial burdens. Conversely, you might have lesser insurance needs if you have no dependents or debts or extensive alternative assets and savings.

How to Get Life Insurance Near Me

At Goal Insurance, we’re committed to helping you and your family secure your financial interests for the near and distant future. Visit our website or call 801-877-6567 to begin exploring your life insurance options.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.