The death of a family member is a tragic and traumatic event. Regardless of the cause of death, losing a loved one can lead to significant mental, emotional and physical turmoil. With this in mind, it may be critical that family members are at least spared the additional burden of financial stress, and an adequate life insurance policy may be an invaluable investment.
For over 20 years, Active Insurance has served the Ann Arbor and Brighton areas to ensure that individuals, families and businesses have optimal insurance solutions.
What Is Life Insurance?
Life insurance functions similarly to many other types of coverage in that policyholders must avoid allowing their insurance to lapse by paying regular premiums (e.g., monthly, annually, etc.). As long as coverage is maintained, beneficiaries listed in a policy will be able to access financial assistance following the death of an insured.
There are many types of life insurance, and policies can often be customized to suit your needs and preferences. In most cases, adequate coverage can be relied on to help beneficiaries pay for the following expenses:
· Medical care
· Burial expenses
· Funeral services
· Outstanding debts
· Lost income
· Estate taxes
· Administrative costs
What Are the Different Types of Life Insurance?
While life insurance comes in many forms, most policies can be categorized into two primary types of coverage. Before beginning to explore your life insurance options, take time to understand the following classifications:
· Term life insurance—These policies provide coverage for a certain amount of time. If an insured dies after a policy has lapsed or when coverage is otherwise inactive, beneficiaries will not receive a payout. Still, term life insurance policies may be a suitable option in many situations. For example, a parent who wants to ensure that their children are cared for might take out a term life insurance policy on themselves that provides coverage only until their children come of age.
· Permanent life insurance—These policies, also often referred to as whole life insurance, live up to their name by providing coverage throughout an insured’s entire life. Regardless of when death occurs, beneficiaries can expect help. These arrangements may offer various additional benefits beyond simply providing insurance. For example, some policies may also include a savings account that can accrue cash value. Policyholders may utilize their policy’s value to reduce their premiums or even for investments in stocks and bonds.
Get the Right Coverage
Accidents may be inevitable regardless of how safe and healthy your lifestyle may be. In the aftermath of tragedy, life insurance can at least make sure that your loved ones are taken care of. However, life insurance is a complicated subject that should not be taken lightly. Talk to one of Active Insurance’s qualified agents about your coverage needs.
You can reach our Ann Arbor and Brighton offices by calling 734-327-5970 or 810-225-8977, respectively. You can also contact us through our website.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.