There are two basic categories of life insurance including term and permanent. Term life insurance is only available for a specified amount of time, usually anywhere from 1 – 30 years. Permanent life insurance goes beyond term insurance and establishes a type of savings as well. Each type of insurance is useful depending on your needs. Here are some basic reasons why life insurance is important to have.
Provide Money for Your Loved Ones’ Needs
Many individuals benefit from purchasing life insurance. A life insurance Altamonte Springs FL agent can help you understand what type of policy meets your individual needs. In the case of your untimely death, your term or permanent life insurance covers the financial needs of your dependents. Even if you don’t have young children who depend on your income, your spouse or older children may still be relying on you for financial support. A life insurance policy replaces your income if you die.
Pay Your Expenses
Another reason to purchase life insurance is to cover your funeral expenses. Funeral and burial prices are certainly not cheap and you don’t want to place an unnecessary burden on your family by expecting them to pay for your funeral. Your life insurance can also cover any medical expenses and outstanding debts.
Give an Inheritance to Your Loved Ones
Some individuals have assets, such as property, jewelry or art, that they can leave to their loved ones. A life insurance policy also acts as an inheritance for your beneficiaries. For example, if you have a $200,000 policy and all funeral expenses and debts have already been paid for, you’ll have $200,000 to leave to your children or other beneficiaries. Be sure to be specific about how to divide the money (i.e., don’t just name the oldest child the beneficiary and expect them to divvy the money out evenly).
Obtaining a life insurance policy is a wise financial investment. There are many reasons to purchase life insurance so be sure to speak with an agent who can help you choose a policy that is right for your needs.