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GoldenTrust Insurance

Peace of Mind: What You Need to Know About Life Insurance

Life Insurance Policy

What to Know About Life Insurance Policies

For most people, a life insurance policy provides the peace of mind of knowing that those you love will be taken care of should something happen to you.

Still, many people put off getting a policy because they feel overwhelmed and aren’t sure what a life insurance policy is and what it covers.

In simple terms, life insurance is a contract. This contract takes place between you and an insurance company outlining your family benefits when you pass away, as long as you continue paying the bill.

Of course, contracts can seem complicated,  and there are often more stipulations that add a significant amount of complexity. It is crucial to always discuss any terms of a life insurance policy with an agent.

Three Types of Life Insurance:

Term Life Insurance

We can think of this policy type like renting an insurance policy. This is a more affordable option for a specific amount of time. Once the term is up, the policy will change into an annual renewable term with a very high premium.

Whole Life Insurance

These policies are often more expensive. However, they cover you for the entirety of your life. A whole life insurance policy additionally enables you to build cash value in the policy that you can withdraw or utilize as collateral over time.

Universal Life Insurance

A universal life insurance policy represents a blend of a life insurance policy and an investment portfolio. This often reflects the most expensive life insurance option. Nonetheless, this is a great option for individuals that are investment savvy.

What Happens After Death?

First, insurance investigators will determine and analyze the ultimate cause of death. As long as you weren’t doing anything suspicious or illegal when you passed away, and the reason remains covered by your life insurance policy, the insurance provider can pay out on the death benefit.

You may additionally expedite some of the processes with an emergency fund set up that your surviving family members or loved ones can rely upon until insurance benefits pay out on the policy.

Additionally, when you want to ensure that your loved ones receive funds from the life insurance policy as quickly as possible, make sure that you list these beneficiaries on the insurance policy.

Unfortunately, if you leave this section blank, the money will go directly to the estate. This typically means that funds that loved ones may depend on will get locked up in probate without release until that process is finished.

Things to Consider in a Life Insurance Policy

The optimal insurance coverage for your needs should fit within your budget while also complementing your overall financial plan. The most important attribute is that a policy offers the appropriate amount of protection to help your loved ones survive should an unfortunate death befall you.

Choosing a policy may feel overwhelming, forcing us to come to terms with an inevitable reality that we don’t want to happen. An unexpected or untimely death can impart negative effects on our family and loved ones once we pass on. 

For this reason, considering life insurance and the unique specificities of individual policies remain crucial for the best possible outcome, and coverage.

What You Need to Know About Life Insurance form GoldenTrust Insurance

Life Insurance PolicyIt takes time and effort to determine an appropriate life insurance plan for your needs but is ultimately worth it when you know that your family will get taken care of. Although this content doesn’t reflect everything you need to know about life insurance, the primer is a good start.

With this information, you should feel ready to contact a qualified life insurance provider like our team from GoldenTrust Insurance. We can show you what it means to feel true peace of mind knowing that your loved ones will be financially protected!