Life Insurance Questions Answered

Life Insurance Questions Answered

Life insurance is a complex topic requiring research and guidance. Below you will find many life insurance questions, answered simply for your understanding.

What Is Life Insurance?

Simply, it is a contract with an insurance company to pay out a sum of money upon the death of the insured, or upon the set mature date of the policy. The money paid out is a death benefit. Many products, or policies, are available for different needs. Some policies may accrue cash value for living benefits. Another policy can pay future expenses, such as retirement funds, college funds, or even emergency funds. Furthermore, a life insurance policy pays for final expenses– things like a cremation or casket.

Who Needs Life Insurance?

First and foremost, anyone who needs final expenses paid upon their death needs life insurance. Retirement funding is another qualifier. Married couples with children, as well as single parents, need coverage. Living benefits pay for college tuition. Purchasing a life insurance policy creates a better future for children and provides more opportunities. A person who is the sole provider needs coverage. Without life insurance, once the sole provider passes, the surviving family faces financial grief on top of grief from their loss.

When Is the Best Time to Get Life Insurance?

The best time to purchase a policy initially is in your 20s, if possible. The earlier you can start the policy the better and more beneficial. When purchasing a life insurance policy, the proposed insured will go through underwriting. Underwriting determines the risk class, and therefore, the cost of insurance. Qualifying for a better risk class means having a lower cost of insurance. As a result, less of the premium pays for insurance and more of the premium builds cash value. Cash value is the part of a policy used while the insured is still living.

How Do I Get Life Insurance?

Purchasing life insurance is easy when you have the right resources. The first step is to find a licensed agent. This licensed agent will assess your needs and find the insurance carrier and product to best fulfill that need. The licensed agent also assists you through the completion of the application and underwriting process. Furthermore, the licensed agent should conduct regular policy reviews to make any changes to your life policy as needed.

Empower Brokerage has several licensed agents readily available to help YOU. Follow the link below for more information, or give us a call!

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