Facts for Life Insurance Awareness Month
September is life insurance awareness month (and the perfect time to learn about the ins and outs of life insurance). What do you know about life insurance? Let’s cover the basics:
1. Many different groups of people can benefit from life insurance. Some people assume young parents with children are the only people who need life insurance, but there are plenty of individuals who can benefit from it. Life insurance can help cover the financial needs of anyone who relies on you: adult children, a spouse, siblings or business partners.
2. There are different kinds of life insurance policies. Whole life and term life are the two main types of life insurance. Whole life policies offer coverage that lasts for your entire life, while term life policies set a specific time limit on the coverage.
3. Life insurance doesn’t have to be expensive. The younger you are when you purchase life insurance, the less expensive your premiums will be. Factors other than age (such as lifestyle and the coverage amount) will also affect the price.
4. Life insurance goes to the beneficiaries of your choosing. The beneficiary or beneficiaries you name will receive the payout from your life insurance. Keep in mind this will not change, even if you name a different heir for the life insurance policy in your will. Keep your life insurance in mind when big life changes happen, such as a divorce or the birth of a new child. You have the option to change your life insurance beneficiaries.
5. Life insurance comes with tax benefits. When a life insurance benefit pays out, beneficiaries do not have to pay taxes on that money.
Not sure what kind of life insurance policy is the best fit for you? We’re happy to answer your questions.