Most people believe that the best means through which a person can make provision for their family, friends, or anyone is through a will. This is not true, as the underlying requirement of having a property or money to devolve in a will and the cost of making a will is not particularly encouraging. An estimated amount of 60% of the US population has no will.
Notwithstanding, there are diverse schemes or arrangements through which a person can make provisions for their loved ones upon their demise. One of such means is life insurance. In this post, we have the representatives of GreenSprout to share with us what we need to know about life insurance.
GreenSprout is a financial blog that offers insights on how to make better financial decisions
Can you quickly walk us through the nature of life insurance and the particular benefits attached to life insurance?
Life insurance is an arrangement in which a person pays regular premiums for an agreed sum which would be paid to his beneficiary upon his death. Essentially, life insurance provides financial security for your loved ones in the event of your passing.
Life insurance is beneficial for so many reasons. It provides protection for the beneficiary and is a good law-abiding tax avoidance measure. The death benefit of a life insurance policy is usually not taxed.
Is life insurance really for everyone, or can it be said that it is designed for a particular type of situation?
Life Insurance is a scheme particularly designed for people who have financial dependents. Although it may not be the case that the beneficiary will suffer financial hardship, it may be a gift to support any individual.
For that reason, the persons that fit into this category include couples expecting a new baby, parents with minors, seniors with younger dependent siblings, adults with dependent parents, families who cannot afford funeral expenses, parents with special adults, and more.
Perhaps, it can be said that there are different forms of life insurance policy?
Yes! There are particularly two forms of Life insurance policy, term life and permanent life. A proper understanding of the distinction between them will help you in making a choice of an insurance policy based on your personal objectives.
Like every other insurance policy, a lot of thought processes must go into the decision-making on life insurance. Are there factors one must keep in mind while seeking to create a life insurance policy?
There are many elemental factors to consider when you intend to create a life insurance policy. But the key consideration when making a decision to a buy life insurance is the purpose of such purchase.
When you consider the reason you want to get a life Insurance, you will be able to determine which type of life insurance policy to go for, the amount of money that will go into it, and the terms of the insurance policy.
Can you give us a guide on how to get started?
The key reflections a person must consider before proceeding to buying a life insurance policy have been discussed earlier. But one cannot displace the role of a high-end professional guidance.
With the wealth of resources from GreenSrout’s website, the roadblocks a person may encounter while trying to secure a good life insurance policy are laid to rest.