Life insurance allows individuals to gain peace of mind and financial security for loved ones and those who rely on them for financial stability. Selecting the right type of life insurance policy can be confusing, however. It is imperative to select the correct type and coverage amount to help avoid financial hardships for those left behind after a covered claim is filed.
Types of Life Insurance
Generally, there are two different types of life insurance. Term life insurance is pretty simple when it comes to terms and conditions. Term life insurance is paid for in advance and protects the beneficiary for a specified amount of time, or the “term” of the policy. After the term expires, the policy can be renewed for the face value selected by the policyholder. This type of coverage can be good for business partners, or for younger individuals without a family or those individuals who have substantial personal wealth and responsibilities to maintain assets.
Whole life insurance is a special type of life insurance policy that allows the policy holder to borrow against the principal over the course of time. After a set amount of years, it can act as an emergency loan or help with college expenses, for example. Whole life insurance coverage is also broken into monthly payments usually and can be a more affordable option for those who want to build security and help protect from financial losses after a covered event. It is also a handy tool to have when planning for retirement.
Working With a Licensed Life Insurance Agent
The best way to ensure you are getting the right type and amount of life insurance coverage is to work with a licensed and experienced agent who can guide clients through the process and help determine both current and future needs. This way, the beneficiary can have the financial assets they need to take care of things such as final expenses and ongoing bills or tuition for the next 10 years. Keep in mind, however, that not every claim process will go smoothly. There are some instances where the life insurance company fails to pay a claim as agreed. For those situations, you need the help of a life insurance attorney. These professional lawyers are a beneficiaries most helpful tool when dealing with unscrupulous life insurance companies. In most cases, there is a satisfactory resolution and the claim is paid after the court proceedings or arbitration.
Selecting the right type of life insurance requires some professional assistance and knowledge of how much is required to care for personal assets or the beneficiaries expenses for the future. Sorting through the details is not advised without help from an agent or a life insurance attorney. Once you find a good source of help and information, you can effectively protect those you care about in the event of your untimely passing.
