Life insurance is often discussed as part of long-term financial planning, especially for individuals with family members or dependents. While the decision to purchase a policy is personal, understanding how life insurance works can help individuals make informed choices.
Advantages of Having Life Insurance
One of the main benefits of life insurance is its ability to help address financial responsibilities after a person passes away. A policy may help cover expenses such as funeral costs, outstanding debts or ongoing household expenses. For families that rely on an insured’s income, life insurance can be a critical part of planning for future financial needs.
Find the Right Policy
Although life insurance policies typically share the same primary purpose of providing financial security for a deceased insured’s loved ones, they may come in several forms with varying possibilities. When shopping for the right coverage, individuals and their families should consider how the following types may address their needs:
- Term life insurance is a temporary policy that can cover an insured for a predetermined term. It may be suitable for those who have specific financial obligations, such as a mortgage or young children.
- Permanent life insurance can establish lifelong coverage, potentially paying out to beneficiaries regardless of when an insured’s death occurs. These policies can typically accrue cash value, which many people use to subsidize their savings and retirement plans.
When People Commonly Review Life Insurance
Many individuals begin reviewing life insurance during major life changes. Marriage, having children, purchasing a home or changes in income can all prompt a closer look at financial planning. Even existing policies may be revisited as circumstances evolve.
Reviewing Your Options
Life insurance is not a one-size-fits-all decision. Our team at Michelle Allen Agency Inc is here to help you understand your options and build a policy that fits your situation.
If you’d like to discuss life insurance options or review an existing policy, contact us today.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.