Life insurance is a liquid asset that can pay expenses upon someone’s death and replace family income. The death benefit is paid by the insurance company to the beneficiary in a matter of days after receiving the death certificate and is not taxable income!
PERMANENT LIFE INSURANCE
Permanent (Whole Life) Insurance will cover an insured until the day of death. Modern Permanent Policies are more valuable than in years past, enhanced with "Living Benefits" which can be used by the policy owner before death. A portion of the death benefit can be accessed to pay expenses related to cancer treatment, chronic diseases, a heart attack, stroke, home care and nursing home care.
TEMPORARY LIFE INSURANCE
Temporary (Term Life) Insurance is the simplest form. For a monthly premium, a Life Insurance company will pay the insured’s designated beneficiary a lump sum of money. The policy expires with no death benefit at the end of the term of the insurance policy, whether 1 or 30 years, so an individual must have an active policy upon death in order for a death benefit to be paid.
Term life premiums depend on the sex and age of the insured and state of health. In general, younger and healthier persons have cheaper premiums; females pay less and tobacco users pay more. Some applications require a medical exam and others may use a phone survey; it depends on the death benefit amount and the age/health status of the applicant.
In the last 10 years, term life premiums have come down for most consumers. It is now possible to buy a few hundred thousand dollars of death benefit for less than a dollar a day.
Use this Term Life Insurance link to learn more, calculate how much you may need, get a no-obligation quote and/or apply.