Your guide to life insurance policies
 

Top Life Insurance Questions Answered

There are a lot of things one should consider when applying for a life insurance policy. This includes things like calculating how much money is needed to keep your family comfortable when you’re gone to how much the lump sum of your life insurance policy be among other things. Knowing the answers to frequently asked questions about such a policy will help you determine what type of policy you will be getting and which provider you will get it from.

Should I really get one?

The answer here is pretty straightforward –YES. An insurance policy whatever it may be for is a financial investment. If you are not convinced that this is needed and just think that this is just an unnecessary expense on your end, think about what will happen to your family if they no longer have enough money because you are no longer there. Things that you should ask yourself include, who will pay for the car loan, who will pay for the mortgage, where will my children get money for their education, etc.

What is a beneficiary and who should I put in it?

A beneficiary is a person or a party that will receive your insurance or its annuity proceeds upon your death. If you are planning to take out a policy, you would have to name a beneficiary or beneficiaries. The names of course can be changed at your request.

How much will it cost?

Premiums must be paid to your insurer. The amount of course will vary depending on the term of policy contract and the type of policy you will be getting i.e. how much the sum assured by the company will be. Your premium can be paid on a monthly, half-yearly, or annually.

How else will this help me?

Aside from ensuring that your family has financial resources when you are no longer around, you will get tax benefits while you are still around. This of course depends on which state you are in since some laws differ from state to state. To get more information about tax benefits, you can ask an insurance agent. One thing is for sure though, your family will not have to worry about income tax regarding death proceeds from your life insurance policy because this will not be classified as taxable income. If you do not have life insurance yet, you should get one today.

 

Life Insurance Smart Tips

How much will it cost?

According to experts however, there is a huge gap on how much premium one pays for a permanent policy compared to a term one. You should remember though that every time you apply for the renewal... read more

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Looking for companies that provide no-load or low-load plans will also enable you to save more money because such plans have lesser built-in expenses.... read more

Life Insurance Glossary

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