What All Your Life Insurance Covers?

by Ryan Polimeni ~ September 12th 2017

Wondering how your loved ones will cope with the financial hardship if the unthinkable happens? Well, an affordable life insurance plan is made to help with the same. Typically, people don’t like to talk or even think about the unfortunate events of life but the reality is that our life is so unpredictable and you may not know what can happen tomorrow. In general, a typical life insurance plan helps the family with a lump sum amount to take care of the funeral costs, pay the loans and bear the daily expenses, in case the insured person passes away. Here, we are helping you clearly understand what the life insurance is and what all it has to offer. In this blog, you will learn about all the benefits life insurance can bring and choose the best life insurance plan as per your specific requirements.

Term Life Insurance for a short-term security

The term life is a great choice when you need the financial security for a short period or a fixed number of years. This is particularly helpful when you know the exact numbers of years when your family won’t be that dependent on you for their expenses. These insurance plans are generally offered for 10, 15, 20, 25 and 30 years. Under this plan, the insurance provider will pay a death benefit to your loved ones, if you pass away before the term expires.

ROP Term Life if you want to be paid back

ROP term life is more like a term life insurance but helps with an additional advantage to the insured. Under this plan, if you have chosen for a 30-year plan and outlive the term, the insurer will pay back the total premium amount. Also, if you cancel an ROP term life, you may receive a portion of the premium amount.

Whole Life Insurance for the life-time security

When you need a cover for life, we suggest you go with a whole life insurance plan. Here, you pay a fixed premium for life and your loved one get an accumulated cash value when you pass away. Also, you can borrow from the cash value to take care of other expenses.

Universal Life to earn while you pay

If you want to earn some while paying premiums for your life insurance, the universal life insurance plan is made for you. Under this plan, you can choose among varying premiums and death benefits. Also, you can terminate the premiums at a certain age and earn some extra money through the investment portion of the plan.

Why should you buy a life insurance plan?

Over the years life has been providing peace of mind to the people with the financial security it brings. There are multiple benefits that you can receive from life insurance and consider buying a suitable a life insurance plan. Here, we are listing a few of them:

Cover Your Children’s Expenses

If you are the sole breadwinner in the family, you might be worried about how your kids will complete their education and take care of other expenses. With an accumulated death benefit provided to your family, you don’t need to worry what will happen when you won’t be there anymore.

Compensate Your Spouse’s Income

Losing your spouse at an early age is a big setback for anyone and becomes bigger if the spouse was earning a decent income to take care of family expenses. A life insurance plan with enough coverage helps with an accumulated cash amount and compensates the spouse income to take care of different family expenses.

Pay Off Your Debts

When you or your spouse passes away with a debt or loan named on them, a life insurance policy greatly helps there. Along with coping with the sudden loss of a partner, this policy helps to pay off the debts with the lump sum amount received.

Pay Final Expenses

You might not wish to put an additional burden on your loved ones after you expire. Along with paying off the debts, a life insurance policy will take care of the expenses occurred in the funeral ceremony and your loved ones will have one less thing to worry about.

Save on the Taxes

Now, this is a real money-saver. Govt. helps with the tax-deduction schemes applicable for different types of investments and insurance is one of them. With a life insurance plan for self, spouse and kids, you can claim a decent deduction on your taxable income.

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