3 Facts about Life Insurance

 Are you considering purchasing life insurance? Read the below article to get more information about 3 facts about life insurance.

Having life insurance coverage is an important aspect of a long-term financial plan. Life insurance funds can be integral to various financial needs, such as inheritance, final expenses, estate taxes, and replacement sources of income for your financial dependents. Here are three facts about life insurance.

1. Types of Life Insurance Plans

There are several different types of life insurance plans available. Permanent life insurance plans, also called whole life insurance plans, will pay benefits in the event of your death. A traditional plan will have the same premiums and benefits for the length of the policy. Universal and variable plans are both permanent plans, but universal plans have flexible premiums and variable plans incorporate savings accounts. There is also term life insurance, which pays benefits if you die while the policy is active. Whatever plan you choose, there will also be differences from other similar plans depending on your employer and your specific needs. For example, life insurance plans for seniors exclusively will have many distinct differences from life insurance plans you get through your workplace due to the different needs and expectations of these populations.

2. Coverage

Your coverage will depend on how you purchase your life insurance, your eligibility, and the type of plan you decide to purchase. Basic life insurance coverage is meant to provide your beneficiaries with the means to pay for expenses that will come in the wake of your death, such as estate taxes, medical bills, and funeral expenses. Life insurance tends to pay benefits quite quickly, typically within a month, if not less. This ensures any necessary expenses can be paid for immediately. It's also meant to ensure your dependents' or heirs' financial needs are met immediately after and for a certain period of time following your death. Life insurance coverage is a vital component of financial planning, especially if you have or are planning to have financial dependents who you'll need to provide for in the event of your death. No matter the type of coverage you opt for, you can use it to pay for a variety of needs.

3. Significant Life Changes

The best time to purchase a life insurance policy is when you have a significant life change. These life changes and events can vary depending on your circumstances and choices. When you get a new job, switch careers, get married or purchase a home, you'll likely be eligible for purchasing a life insurance plan or changing your life insurance policy or coverage. Not every person will experience every key life change, but everyone will experience at least once. You should review your life insurance policy along with your other financial plans any time you experience a significant change in your life to ensure your coverage is still adequate.

 The life insurance policy you choose will depend on your financial needs and goals, your job or source of income, and which plan you think will be of the most benefit to you. You can access life insurance policies through independent providers, your employer's benefits plan, and other similar sources.