Life Insurance: What it Is and Why You Might Need it
Life Insurance is a contract between an insurance company and you to ensure your loved ones receive money to take care of the important things when you pass away. Life insurance can act as a safe guard for your family in the event of an accident or the natural cycle of life.
How Does Life Insurance Work?
When you decide to acquire life insurance, you make a payment of a set amount each month over a period of time in exchange for the full amount to be paid out to whoever the policyholder (you) chooses as the beneficiary (your loved one).
This payout will occur as long as the policy is active at the time of the policyholders passing.
Is Life Insurance Worth it?
Life insurance is a very important step in ensuring your family is equipped to handle any situation that is thrown at them. A lack of planning can lead your family into possible financial struggle. When the inevitable happens, life insurance protects your family from even more hardship.
Different Types of Life Insurance
There are many different types of life insurance plans to choose from. Here are some of the different ones and what they provide:
Whole Life Insurance: This coverage is designed to last your entire life and increases the cash’s value as long as you pay your monthly premium.
Term Life Insurance: This coverage is more affordable and simpler than whole insurance, allowing an individual to choose to pay for coverage for a predetermined time period.
Accident and Health Insurance: This coverage is designed for major accidents and health events like heart attack, cancer, or accident-induced injuries.
How Much Does Life Insurance Cost?
The cost of life insurance is variable and largely depends on what type of plan you choose. Some other factors that affect price include:
Age: Usually, the younger you start paying for life insurance, the less it costs overall. For example, average premiums for a 20-year, $500,000 term life insurance policy are $21.57 per month for a 25-year-old female nonsmoker but $78.81 per month for a 50-year-old female nonsmoker, according to Policygenius.
Gender: Women often pay less for life insurance because they have a longer life expectancy than men.
Smoker Status: Smokers typically pay more for life insurance than nonsmokers.
Insurance Type: Permanent and Whole life insurance are usually much more expensive than Term life insurance.
Protect Your Loved Ones With Life Insurance
Life can be unexpected. Making sure your family is ready to handle any situation that comes their way is essential. Here at Ebensburg Insurance, we want to help you find the perfect coverage for yourself and your family. If you are interested in Life Insurance, contact us today and we will find the perfect plan for your lifestyle.
Protecting your family from the worst allows you to live your life to the fullest.
