Purpose of Life Insurance ? Life Insurance will Protect your Loved Ones
Life insurance is a type of insurance that you can purchase that will provide money for your dependants after your death. It is a contract between you and the insurer that the insurer will pay out a sum of money after your death. You agree that you will pay a premium in small amounts regularly or lump sums annually. You can get policies of varying amounts and should take into account the standard of living you wish your dependants to have after your death. The purpose of life insurance is to provide monetarily for your loved ones after your death.
Your dependants will receive the money several months after your death. Beneficiaries are required to send a copy of the death certificate to the insurance company in order to claim the benefits. To cover the funeral and burial expenses, a burial insurance policy or similar type of insurance should be purchased separately. These pay out immediately without a death certificate so beneficiaries can take care of immediate expenses following your death. The purpose of life insurance is to provide peace of mind to your dependants and to you. You can know that they will be taken care of after you are gone.
Selecting the proper amount of insurance is very important when purchasing life insurance. Life insurance policies are generally in very large sums. You may be tempted to assume that 0,000 is enough, or go with a policy that has low monthly premiums. It is good that you have decided to buy a life insurance policy at all; however, a little planning ensures that the benefits will really make a difference. You should calculate exactly how much your dependants are used to living on annually. If you wish them to continue to live at that level, then add up that sum for the number of years you wish your life insurance policy to cover them. The purpose of life insurance is to allow your family to keep functioning as usual even though your income is gone.
Lest you think that Social Security or other such programs will help your family after your death, think again. If you calculated just how much your dependants would need to keep living as they are now, you also realize that Social Security wouldn’t even come close to getting them through. The purpose of life insurance is to fill the gap between public programs and actual living expenses.
If you would like more information on life insurance at prices half off the usual cost normally offered in the marketplace, visit our web site for a discounted rate quote on lifeinsurance.
Sean Johnson is a financial advisor for http://life-insurance-buyer.com as a referral agency that connects consumers with insurance products half off the usual cost.