Life insurance can be called “love “insurance because we use it to protect the ones, we hold dear. It’s the true definition of love for your family that can be the key to ensuring their future financial security.

What is life insurance?

When trying to piece the importance of life insurance together, you will probably have numerous questions. Luckily for you, we have put together the basic information you need to figure out life insurance’s role.

Life insurance is one of the common types of insurance available. It merely implies that you buy various life policies that shield your family from the financial crisis and hardships resulting from loss of income.

The insurance term offers financial cushioning for your beneficiaries if the insured dies having bought the insurance policy. In this case, the term refers to the period you have an active insurance policy over your life. It can be anywhere from one decade to four, depending on the length you choose when buying the life policy.

Types of life insurance

1. Term life insurance

It’s a temporary policy that offers death benefits for a specific period known as the term. The period can range from 10 to 40 years. This type of insurance does not accumulate benefits where beneficiaries receive the specified benefits in the policy. It costs much less than other life insurance policies, especially if the insurer is younger.

2. Permanent policy

It remains in place for as long as the policyholder continues to make payments in time. The cash reserve on permanent policy continues to build up with the policy.

How life insurance works

The premiums remain unchanged through the coverage term, and in case you pass within this time, your beneficiaries receive a lump sum of your death benefits. The money can pay off medical bills, debts, or any other policy pay-out you choose. An insurance company will work with you to find the best policy that fits your needs.

Do you need a life insurance policy?

Some people are not sure whether they need a life insurance policy. The simple answer is that if you have someone looking up to you for financial support, then its high time that you secured yourself a life policy. Some examples of individuals who need life insurance include:

• Young and single – They may acquire various debts that need settling along with funeral expenses. A life insurance policy can help avoid leaving your family with too much burden.
• Married and engaged – Couples usually depend on two incomes. Couples need life insurance to avoid drastic expense changes.
• Parent – A parent is a primary provider for their bundle of joy. Since raising kids is an expensive endeavor, you should do all you can to ensure that they are well funded, even in your absence.

Who can benefit from life insurance?

You can use the policy to protect a single person or more. The beneficiaries can be:

• Spouse (heterosexual and same-sex)
• Children (both biological and adapted)
• Organization (business or charity)

The money received from this life insurance is known as the death benefit, and the life insurance company releases it to your beneficiary in one lump sum. The life insurance policy is diverse, and it has no limitations on the number a single person can purchase. Therefore, you can choose to take multiple policies with different term lengths and coverage. All you have to do is make sure that your premiums payments are always up to date to ensure that your coverage remains viable.

Advantages of life insurance

• It’s an affordable low-cost coverage
• It provides coverage for a specific time frame
• Fixed premiums for the insurance period
• Offers financial security for your family

Conclusion

Life does not offer any guarantees. Taking a life insurance policy is a bold and necessary step that provides financial security to the ones you love in the event of the unthinkable. Each payment is a sign of your commitment to protecting your family and the legacy that you will leave behind.

Oh, one last item to consider is the potential and incredible tax-free benefits that come with properly structured life insurance plans.

If you are interested in learning more of the benefits of how life insurance can provide potential benefits while you are living as well as the legacy you will leave behind, please do not hesitate to reach out to me and my team will show you how.

Always Be outstanding and let’s make yesterday jealous of today!

Vincent A. Virga

Insurance products are offered through the insurance business PFS Wealth Management Group. PFS Wealth Management Group is also an Investment Advisory practice that offers products and services through AE Wealth Management, LLC (AEWM), a Registered Investment Advisor. AEWM does not offer insurance products. The insurance products offered by PFS Wealth Management Group are not subject to Investment Advisor requirements. Investing involves risk including the potential loss of principal. Any references to [protection benefits, safety, security, lifetime income, etc.] generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.