Insurance in general (and life insurance options in particular) can be quite confusing for folks as there is a myriad of options out there and an overwhelming amount of information to be considered for those interested in coverage. Insurance is available, in short, to provide those covered a sense of safety and reassurance that, should tragedy ever strike, the named beneficiary will have the support necessary to move on with life in good hands financially. Good life insurance can provide extraordinary financial support and relief to the policy’s beneficiaries in the aftermath of a loved one’s death.
It is noteworthy for families with children to be aware that coverage can be so vital in the case where one or both parents die. The money can be then utilized to fill in for the deceased spouse’s income, help with the children’s college education, to pay off any and all debt, and handle funeral costs. This protection for one’s children is important and, on top of everything else, relatively inexpensive.
There are two main kinds of life insurance normally offered. There is term life and whole life essentially. A term life policy, as the name suggests, gives one coverage for a certain “term” or number of years, which can be anywhere from 1 to 30 years per term. On the other hand, a whole life policy extends coverage that remains in effect for as long as one pays his or her premiums.
The main advantage of term life is its relative reasonable cost as compared to a whole life policy. Keep in mind though, that if the policyholder lives longer than the coverage term, the payout upon death is no longer available. Whole life will mean a higher out-pf-pocket cost for the covered, but there is a whole host of stand-alone benefits, such as a guaranteed payment upon death regardless of how long the policyholder may live. As an added bonus, whole life policies can also offer investment options that can go a long way toward lowering one’s coverage expense over time.
Some coverage options provide an accelerated death benefit, which allows a policyholder who has been diagnosed with a terminal illness the choice of using some of the death benefit before they die to help in paying many expenses, such as their medical bills, lost income, transportation and more. The negative here is that any funds used will reduce the payout amount for beneficiaries upon the policyholder death.