Having a life insurance policy is important regardless of your personal situation because it provides financial assistance to your loved ones when you pass away. It is important to fully understand your life insurance policy to help you and your family plan financially and to ensure that the people in your life are taken care of when you are no longer there. If you are located in Willmar, Minnesota and have questions about life insurance, MG Insurance Inc. can help. Continue reading to learn more about the importance of life insurance.
How Does Life Insurance Work?
With a life insurance policy, a policyholder pays a monthly premium to an insurance company, and the company then pays a death benefit to the policyholder’s beneficiaries when they pass away. There are two main kinds of life insurance, term and permanent life insurance. Term life insurance coverage lasts for a specific period of time, and is typically cheaper than permanent life insurance. If a policyholder dies during the covered time period of the term, then the beneficiaries will receive the allotted monetary amount. However, if the policyholder passes away outside of the designated coverage period, there is no payment made. Permanent life insurance policies increase in value over time, and cover a policyholder throughout their entire lifetime, not just for a specific term. There are different types of permanent life insurance to choose from, such as whole life, universal life, and variable life.
What Advantages Does Life Insurance Offer?
In addition to protecting your family and your legacy, having life insurance can offer many other benefits. It gives you the peace of mind that your family will have financial stability while you are gone, and can be used to help pay off medical and funeral expenses, a mortgage and other debt, like credit cards, college loans, etc. It can also be used to pay for living costs such as long term care for aging family members. Death benefits are typically tax free, and life insurance can also be bundled with other types of insurance to help supplement your salary if you are unable to work. Certain life insurance policies also can even be withdrawn from and borrowed against while the policyholder is still living in order to supplement retirement, etc.
Get Help Deciding On the Best Life Insurance Policy For Your Situation
Having a life insurance policy helps to ensure that your loved ones are taken care of when you pass away, and can also offer several other advantages within a policyholder’s lifetime. It does come at an additional monthly cost, but is still affordable and offers peace of mind. If you are located in Willmar, Minnesota, and have questions about your life insurance policy, contact MG Insurance Inc. today.