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061322 What to Know About Life Insurance…

Millions of adults go to great lengths to protect their assets.

Those measures run the gamut from simple everyday efforts like utilizing

two-factor authentication when accessing financial accounts via online or

mobile banking apps to more complicated undertakings like estate planning.

Life insurance is a component of estate planning that is vital to anyone

looking to protect their assets in the event of their death.

 

Explaining life insurance

 

Life insurance is both similar to and different from other types of insurance.

Like homeowners and auto insurance policies, life insurance provides

financial protection in difficult circumstances. A life insurance policy is a

contract between an insurance provider and a policy holder that guarantees

a payout to beneficiaries designated by the insured individual in the wake of

that individual’s death.

 

Personal history

 

Insurance providers differ, but individuals interested in life insurance can

expect to be asked about their medical histories and lifestyle habits when

discussing policies. Prospective policy holders will often be asked to sign

waivers that allow providers to access their medical records. This is

necessary so companies can get an idea of the health of the person applying

for life insurance, which will determine the cost of a policy. That information,

as well as family history, is important because it can serve as an indicator of 

future health risks. Some variables, including lifestyle habits like smoking,

won’t necessarily appear on an individual’s medical history. In an effort to

address that, insurance providers typically ask prospective policy holders to

answer a variety of questions about their lifestyle, including whether or not

they smoke and how much alcohol they consume. It’s vital that individuals 

answer these questions honestly, as companies can deny payouts to

beneficiaries if they determine policy holders misled them during the

application process.

 

Coverage

 

Coverage needs vary depending on the individual. Life insurance is intended

to provide for loved ones in the aftermath of a policy holder’s death. How

much money will those individuals need to pay their bills? Young adults who

are just starting their families may want more coverage than aging adults who

have already paid off their homes and saved a considerable amount for

retirement. The National Association of Insurance Commissioners

recommends that individuals ask themselves how much of the family income

they provide and if anyone else, such as an aging parent, depends on them

for financial support. Answering these questions can help individuals

determine how much coverage they need.

 

Types of coverage

 

Insurance providers offer various types of life insurance policies. Term life 

policies are among the most popular because they tend to be affordable while

offering substantial coverage. There are different types of term life policies,

but policies tend to run for anywhere from 10 to 30 years and expire around

the time individuals reach retirement age. That’s because many people save

enough for retirement and don’t have the sizable expenses, such as a

mortgage, to account for at this point in their lives. That means loved ones

won’t necessarily need to be provided for in the wake of a policy holder’s death.

 

(Note:) Plumlife offers the client the option at the end of the term to convert

the policy to a whole life or universal plan before age 70.

 

Permanent life insurance policies last until the policy holder’s death so long as

he or she continues to pay the premiums on time. Financial advisors can help

individuals understand the ins and outs of the various types of permanent life

insurance policies, which differ from term life policies because they can serve

as investment vehicles and sources of loans in certain instances.

 

Life insurance is a vital component of asset protection that can offer peace of

mind to policy holders who want to ensure their loved ones are provided for in

the wake of their death.

 

Author: Metrocreative Connection
Source: © 2022 Washington Times Herald, 201 E. Main St. Washington, IN
Retrieved from: www.washtimesherald.com/
FINRA Compliance Reviewed by Red Oak: 2191248

https://fflheartland.advisorprofiles.com/article/544061

 

Contact:

Hayden Childs

Alabama Licensed Agent

(205) 269-1382

 

I am an Independent Insurance Agent

Offering both term and whole life with

Several highly respected companies.

 

I work for you to get you the most

Coverage at the bottom dollar!

 

Looking for term life?

 


 

 

https://www.helloplum.com/agent/childs-806

 

 

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