Why is there a Need for Life Insurance Services?
Everyone wants a secure future for themselves and their families and life insurance is one of the most effective ways to consider it. Life insurance services offer you mental satisfaction by securing your financial future. Whether you want insurance for health, accidents, injuries, funeral expenses, or to pay a debt or mortgage, you can easily get it.
We at Insure Guardian provide you with an extensive guide to life insurance and its services.
Life Insurance
Life insurance is typically a contract between the insurer and the insured. This contract is the agreement that the insurer will pay a death benefit to the beneficiaries of the insured in case of his death in exchange for paid premiums. However, an insurer is the insurance provider offering a life insurance plan while the insured is the policyholder or policy owner.
The beneficiaries are free to use the lump sum amount for whatever purpose they want. Mostly this includes paying daily life expenses and bills, paying a mortgage, or educational expenses. Having life insurance means your family is protected and doing well with the things you have planned for them even after you pass away.
Benefits of Getting Life Insurance Services
Paying Funeral Costs
Life insurance payouts can be used to pay for the final expenses of the insured after his death. These expenses may include funeral or cremation costs, medical bills not covered by health insurance, and any other unpaid obligations of the policyholder.
Income Replacement
Life insurance services help you to replace your income in case of your sudden death especially when you leave dependents behind you. It means your beneficiaries can use the lump sum amount to carry out their daily routine expenses like college or school fees and groceries.
Legacy
You can leave a legacy for those you care about by purchasing life insurance services. Meanwhile, if you want to have a particular person get the benefit of your policy as an inheritance, you can choose that person as the heir or beneficiary of your plan. It will make sure that your death benefits will be handed over to the person you intended to get.
Paying Estate Taxes
Based on your state laws, your heirs have to pay an estate tax on any inheritance they get from you. While having insurance services benefits they can use them to partially or completely pay the amount. However, it is recommended to consult a financial professional to know how estate taxes will affect your beneficiaries.
Charitable Contributions
If you want to make contributions to any charity or welfare institute you can easily do it through life insurance plans. You can do so by naming your desired charity as a designated beneficiary. In this way, you can make sure that your philanthropic goals are fulfilled even after your death.
Available Types of Life Insurance Services
General, there are two types of life insurance services including:
1- Term Life Insurance
Term life insurance is a simple and affordable type of life insurance that is specifically designed to replace your income after your death. However, it usually covers you for a certain period and its coverage amount goes up to a million depending upon your policy. Mostly people buy this plan as it’s one of the cheapest life insurance and is sufficient for them.
2- Permanent Life Insurance
As the policy’s name suggests, permanent life insurance covers you for your entire lifetime. It may be complex to understand as the policy combines death benefits with a cash value portion. It also has higher premiums than term life insurance as it offers lifelong protection and accumulates cash value with time.
Insurance plan has three further types
Whole Life Insurance
Whole life insurance is a traditional permanent life insurance that comes with a guaranteed death benefit and a cash value component. The premiums of this plan are higher but remain constant throughout the plan. As it offers lifelong coverage, it suits the best who need a plan for protection as well as savings.
Universal Life Insurance
It is a more flexible type of permanent life insurance that allows the insured to adjust their premiums and death benefits within a certain limit. Just like Whole Life it also has a cash value component that grows according to the performance of the plan’s investment in the market. It’s an attractive choice for those who want more control over their insurance plan.
Indexed Universal Life Insurance
This policy is generally a variation of universal insurance that allows you to earn interest on the performance of a particular stock market index like the S&P 500. It combines already available options of universal insurance with the potential for higher cash value growth through investment. It’s the best suit when you want both lifelong coverage and the potential for higher returns in the same insurance plans.
Are Life Insurance Services Worth Buying?
Getting life insurance services will be a good idea if you have some dependents like a spouse, old parents, or children who rely on you for their basic needs. These services will make them financially stable in case of your death. However, it’s imperative to consider your financial goals to determine where a life insurance service helps you to reach them.
Get a Quote Now
While getting a life insurance service, it’s important to examine different options. We at Insure Guardian provide you with a free quote service that will help you to determine the best estimate for your future.