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Life Insurance Services to Help You Find the Plan Perfect for You
Life is full of unexpected events, and there is no way to know what will happen next. It is always a good idea to prepare for any possibilities that might come your way in life. At Compsured Insurance, we want to ensure that you get coverage to all the insurance coverage you might need to secure the financial future for your family and yourself. This is where our Life Insurance Services come in.
Purchasing life insurance can protect your spouse and children from potentially crippling expenses that could befall them in case something happens to you. It offers your family a degree of financial protection, helps pay off debts, cover living costs, and pays for any medical or final expenses.
We are dedicated to making sure that you can offer adequate financial protection for your family in the event of your passing. There are several types of Life Insurance policies you can purchase, depending on your needs. At Compsured Insurance, our life insurance agents work closely with you to help you find the best policy to align with your requirements to help you secure the financial future of your family and loved ones.
What is Life Insurance?
Most people only know that life insurance is a policy you purchase that pays money to your family if you pass away. Of course, that is an oversimplified definition. There is more to life insurance you should understand.
Life insurance is a contract you agree on with an insurance company that guarantees that the insurer will pay a sum of money to beneficiaries you have named when you pass. In exchange, you pay premiums to the insurance company during your lifetime.
There are several different types of life insurance policies that offer various benefits and understanding them can help you identify the most suitable policy for you.
Different Types of Life Insurance Policies
Life insurance is an essential part of financial planning. One reason most people purchase life insurance policies is to replace the income that would be lost in the event of a wage earner’s passing. An important feature of life insurance is that the beneficiaries are typically not liable to pay income tax on proceeds they receive in death benefits due to your policy.
Understanding the most common types of life insurance policies can make a world of difference in helping you choose the best policy to meet your needs. This section will cover the different types of life insurance policies we can help you get.
What is Term Life Insurance?
Also called level-premium insurance policies and mortgage protection policies, level term insurance policies offer insurance coverage for a specified time period that ranges from 10 to 30 years. The premiums you pay and the death benefits that are given to your beneficiaries through this type of term life insurance policy are fixed.
Yearly Renewable Term Policies
Yearly renewable term policies do not come with a specified term, but you can renew them each year without offering evidence of insurability. Your premiums for this type of term insurance policy will increase as you grow older. However, these policies tend to become considerably expensive, making them an unattractive option for most people.
Decreasing Term Policies
Decreasing term policies are a type of term life insurance in which the death benefit goes lower each year. You have to pay a fixed premium throughout the duration of the policy. These policies are often used in tandem with mortgages to match the coverage with the principal of the home loan as it declines each year.
What is Whole Life Insurance?
Whole life insurance, often referred to as traditional life insurance, is a type of insurance policy offering permanent death benefit coverage for you. Depending on the specific policy you purchase, your whole life insurance policy may also offer a savings component that increases the cash value over time through accumulating interests. Whole life insurance is the original type of life insurance policy.
The policy pays out a guaranteed death benefit to your beneficiaries in exchange for regular premium payments. The cash value alongside the death benefit through a savings portion in the policy can help you grow the death benefit rewarded in case of your passing.
What is Universal Life Insurance?
Universal life insurance is a kind of life insurance policy you can use to secure your family’s financial future in case of your death. Universal life insurance policies have an investment savings aspect to them that work with low premiums to provide you with the opportunity to grow the payout to beneficiaries in the event of your passing. These policies are more flexible than whole life insurance policies. You can adjust your premium payment amounts and death benefits.
The premiums for universal life insurance policies comprise the cost of insurance and cash value. The cost of insurance is the minimum premium necessary to keep your policy active. This amount keeps increasing as you age. The savings element of the policy comes through any excess payments you make being accumulated in the cash value portion of the policy. However, the accumulated cash value might be able to cover the increases in the cost of insurance premiums.
What is Final Expense Insurance?
Final expense insurance is an insurance policy type that comes with a small death benefit. This insurance policy is easier to get approval for and is designed to provide coverage to help your family members pay the expenses for your funeral arrangements in the event of your passing. Final expense insurance is also referred to as burial insurance and funeral insurance. Some policy carriers also refer to it as modified whole life insurance and simplified issue whole life insurance.
Final expense insurance policies are a popular type of coverage people ask for because it is a more affordable insurance policy type. The smaller death benefits mean the premium payments are more affordable, and the policy is permanent. It means that in the event of your passing, your beneficiaries will get the death benefit through this policy, provided you have paid your premiums.
How to Find the Best Life Insurance Policy For You
There are two certainties in life: Death and taxes. With taxes, you know when they are due and must pay them. Death, on the other hand, is unexpected. Nobody is keen on dwelling on death, but it is crucial to prepare for the possibility so that the loved ones you leave behind are taken care of.
The right life insurance policy can help your heirs cover funeral expenses, pay off any debts, or manage day-to-day living. Determining the right type of life insurance policy can be challenging. You need to consider several factors when shopping for the most suitable life insurance policy for your family’s needs in case of your passing. Working with life insurance experts can help you identify the best life insurance policy to meet your needs and cover your family’s requirements when you pass.
