Did you know that life insurance is one of the most important personal financial investments an individual will make in his or her lifetime? Unfortunately, life insurance is still often overlooked by many, which puts families in a difficult situation and financial hardship when one passes away. In order to protect your family in the event of a death, this is why life insurance is so important. But it doesn’t have to be expensive. Consider working with a professional life insurance company in Kirkland today to learn more about the different types of life insurance and which one is right for you.
Life Insurance Basics
Similar to homeowners insurance, auto insurance, and health insurance, a life insurance policy is a “contract” with an insurance company, which stipulates that the company will provide financial coverage in the event of an accident, traumatic event or death in exchange for premium payments.
There are different types of life insurance, which include term life insurance, permanent life insurance, whole life insurance, and universal life insurance. Life insurance is typically selected on the needs of the individual or insured. Furthermore, in most situations, death benefits from a life insurance policy are tax free, however, it’s important to discuss with this a CPA or accountant to know how life insurance will work in your situation.
Here is a brief summary of each type of life insurance:
Term Life Insurance – Term life insurance can help individuals and families with lost wages or income for a specific amount of time, usually in the short term. It can also be used to pay off a debt, such as a mortgage, maintain a business or paying off college. Term life insurance is often provided as a “benefit” in one large lump sum.
Permanent Life Insurance – Permanent life insurance provides a lump sum, or “death benefit” amount to beneficiaries, such as a surviving spouse, sibling or child in order to help pay for funeral and/ or burial expenses, and even maintain financial obligations long after the insured has passed away.
Universal/ Whole Life Insurance – Universal life insurance is commonly used in an estate planning strategy and be a long-term income source. These types of policies help to ensure that the wealth and estate be transferred to beneficiaries upon an individual’s death.
For more information on whole life insurance company, company ratings, life insurance policy, contact your local life insurance company in Kirkland. Call American Insure-All® today at (888)411-AUTO for a free quote and to get started!