What is Life Insurance?
Life insurance is protection for your family’s financial future should the worst happen. It can help lower the financial risks your family faces in the event you can no longer provide for them.
When you purchase a life insurance policy, you pay premiums on a periodic basis. Then, upon the death of the insured, a lump sum is paid to the beneficiaries. There are many different types of coverages with multiple add-on options, so policies can be customized to match your personal needs and goals.
Before digging into the details of the different types of policies, it’s helpful to understand the benefits of having life insurance and how it can help protect your family in the long run.
Benefits of Life Insurance
- Safety and security for your loved ones. Ensuring the safety and security of loved ones is the primary reason many people purchase life insurance. In addition to covering funeral costs, your policy can provide income to pay expenses, such as a mortgage, continuing a family business, higher education for children and many other situations.
- Paying for chronic or terminal illness. There is a common misconception that life insurance is only useful after a person has passed away. But, in reality, some policies have optional benefits that can help pay for chronic or terminal illness care expenses.
- Access to the cash value. If you purchase permanent life insurance you will generally be able to access your insurance’s cash value through a policy loan or withdrawal for emergencies, retirement income and more. You have the flexibility to access your accumulated cash without the restrictions that other investments may carry.
- Leaving a legacy. With a life insurance policy, you can create additional wealth for your family or a charity you want to support. This is an excellent tool for building the funds you need to make an impactful donation to community organizations that are important to you.
Suzanne Brown Insurance Agency
A Texas Independent Insurance Agency with over 100 insurance carriers