There are many benefits of life insurance for anyone who wants to protect their loved ones or beneficiaries. However, as much as most people know it is essential, they also admit they do not understand how it works. That is why Brevard Insurance Agency Inc of Brevard, NC takes explains how life insurance works.
What is Life Insurance
It is a contract between you (the insurance policyholder) and the insurance company where if you pass away, your loved ones receive a lump sum of cash based on the premiums you paid when you were alive. Below are the different types of life insurance and how they work.
Term Life Insurance
Just as the name suggests, this type of coverage is for a specific length of time, and you will find most people opting for it as they consider it affordable. If one dies during the years they were earning, the family members can use the payout to replace the income they were getting, especially if they were the sole provider in that family. Beneficiaries can put that money into various uses like funeral expenses, kids’ tuition fees, and other house expenses. This policy comes with flexibility, where you can choose the length of term you want.
Universal Life Insurance
This is a permanent type of life insurance accompanied by a flexible premium structure. One benefit of this type of policy is that you can adjust it when your financial circumstances change, as long as you sufficiently pay the required premiums.
Whole Life Insurance
Whole life insurance provides one with coverage to last them their entire life as long as they keep paying the premiums on time. It comes with a fixed cost based on your age when buying it and guarantees a growing cash value. After you die, your beneficiaries will receive a payout as long as you made sufficient payments.
Variable Universal Life Insurance
This type of policy helps protect your beneficiaries while giving you the flexibility to invest. You, therefore, get to choose where you are comfortable investing your cash.
To enjoy life insurance benefits, Brevard, NC residents can contact Brevard Insurance Agency Inc for assistance in picking the right life insurance policy to protect their beneficiaries.