Why Do I need Life Insurance?
When you are evaluating tools and options that are available for financial planning, one product that many people consider is a life insurance policy.
While you may wonder whether it is worth it to get a life insurance policy, if you love your family and you want some level of assurance that they will be okay financially in the event of your unexpected death, a policy from American Insurance helps provide some relief as they work through their grief.
It is important to understand the different policies that are available today to make sure you select the right coverage.
Whole Life Insurance
Whole life policies are life insurance policies that have a set payout amount in the event the person that is covered passes away. Premiums on this type of life insurance must be paid every month to keep the policy current.
One of the advantages of this type of life insurance is that every time the Premium is paid, this builds up a cash value that can be borrowed against if needed. This type of insurance is valid for the entirety of the covered person’s life or until the policy is cancelled.
Term Life Insurance
Another type of life insurance that is available to people is Term Life Insurance. This type of insurance policy is taken out for a set number of years, typically anywhere from one to thirty years. If the person who is covered dies during this period, the life insurance policy pays out.
If the person who is covered does not die during the set period of the policy, it simply expires.
Cover the Costs of Your Final Arrangements
According to the National Funeral Directors Association, the median cost for a funeral and a casket in the year 2015 costs slightly over $7,000.
Sadly for many people, this kind of expense is not one that is easily paid for. By investing in a life insurance policy today, you are taking the burden off of your family and loved ones to have to pay for these final arrangements themselves.