Life insurance is not very well understood. Many people aren’t sure of how this insurance works and who needs it? As a retired person, you may feel that it’s too late to invest in life insurance but this isn’t necessarily true. Life insurance can be beneficial to almost anyone. The premise of this type of insurance is quite simple. The ABC’s of how life insurance works are simple as well. Focus Insurance of Eureka, MO wants state residents to understand how life insurance works and the benefits associated with it that are available to people of all ages.
What is Life Insurance?
Life insurance is insurance coverage that pays your beneficiaries a lump sum of money when you die. This is called a death benefit. The money can be used in any way that your beneficiaries see fit. It is a contract between you and the life insurance company.
What Are Common Types Of Life Insurance?
There are four basic types of life insurance. You can invest in whole life, term life, universal life, and variable life insurance. The most commonly purchased life insurance policy is whole life. Whole life insurance is designed to cover the entire life span of the policyholder if the premiums have been paid. Beneficiaries receive cash benefits upon the policyholder’s death. Term life insurance covers a policyholder for s specific number of years or time. If the policyholder dies within that specified period of time, the beneficiaries receive a cash/death benefit. Variable life insurance is life insurance with an investment policy. This insurance policy has both cash value and investment options. It works like a mutual fund. Universal life insurance has a cash value that grows according to the interest rate set by the insurance company. Focus Insurance of Eureka, MO is committed to helping you understand life insurance and its benefits and we’re also committed to helping you choose the best policy for your situation. Regardless of whether you’re a retiree or just starting out, life insurance can create peace of mind. Give us a call. We’re here to help.