Life insurance is the most effective way to ensure your family is financially secure when you pass away. Without life insurance, your loved ones may face financial hardship, be unable to access funds, and be left without the stability of primary incomes.
Life insurance policies are available in two basic types: Permanent and Term. Term insurance is very affordable and provides insurance for a certain period or a specified “term” duration. Permanent insurance guarantees an eventual payout and is designed to insure you for life. Permanent life policies have higher premiums but have the advantage of accumulating value over time, and last well-beyond the shorter-term plans.
Protecting Your Family With Life Insurance
Your financial planning should include a Life and LTC insurance plan. Rather than leaving loved ones with any financial burden and a drain on retirement assets, Life and LTC plans will ensure a tax-free payout serving as a replacement for these costs and unfortunate circumstances. You also may have an estate to pass on to those you love, but it can take time for probate to be completed. A life insurance death benefit is paid quickly and is not subject to taxation – leaving your families financials and well-being in your hands instead of the governments.
Final Expense Life Insurance
Insurance policies can cover end-of-life costs, which can be a significant financial burden. These insurance policies cover the costs of a funeral, memorial, burial, cremation, caskets, or urns. In addition, some policies cover the cost of medical bills incurred by the deceased before death. The premiums for this type of insurance vary in price, based on the death benefit, age, and the insured’s health.
Fixed Annuities
A fixed annuity pays out a fixed amount of money (also known as a lump sum), which can stabilize income no matter the ups and downs of the market. Based on the plan, when the owner of a fixed annuity passes away, the remaining funds may pass to the insurance company or a beneficiary. Some fixed annuities are designed to provide income to beneficiaries and a death benefit. If you want to ensure your loved ones have the financial support they need when you are gone, ensure you have a fixed annuity with a death benefit. The insurance company may also offer you the option to increase the value of the death benefit.
Mortgage Protection
A mortgage payment is typically the largest monthly expense for an individual or family. Ensuring the mortgage payments are current is critical. Mortgage protection insurance makes it possible for your home mortgage to be paid if you suddenly die before the term of the mortgage has ended. You pay a monthly premium for this insurance that guarantees that if you suddenly die a lump sum is paid to your home mortgage provider.
