If you’re like most people, you may be overwhelmed by the idea of selecting a life insurance policy. Life insurance, however, is a practical way to secure the financial future of your family after you’re gone. The following facts from Alling Agency LLC in Pennsylvania explain more about life insurance and the benefits it has to offer.
Life insurance is designed to protect your family by providing financial support in the event of your unexpected demise. You pay premiums for the duration of your policy in exchange for benefits for your family after you pass on. Life benefits can be used to pay off debts, cover daily expenses or pay for school or medical costs. They can also be put into a trust to pay for your children’s college expenses after they’re grown. If you’re the main source of income for your family, life benefits can provide valuable financial support to enable your family to carry on after you’re gone.
Life insurance can be divided into two categories: term life and permanent life policies.
Term life insurance is purchased for a specific amount of time, such as 5, 10, 20 or 30 years. You agree to pay premiums for the term of your policy after which the policy will expire. If you pass on during this term, your loved ones will receive the benefits designated in your policy.
Permanent life insurance lasts for the duration of your life. Whole life and universal life insurance fall within this category. Whole life insurance is purchased at a set premium and covers you for life, as long as the premium is paid on time. With universal life insurance, your premium is adjustable, and the policy accrues cash value over time which you can borrow from or invest, depending on how you choose to manage your policy.
For help in choosing life insurance protection for those you love, call or visit us at Alling Agency LLC in Pennsylvania.