Life Insurance Policies
Life coverage policies are perfect for people who are over the age of 35 and have a family that they worry about. By entering into a life coverage policy, the insured person has peace of mind because they know that their family is financially secure. A life insurance policy can be taken out simply to cover funeral costs and pay debts. Or a more expensive policy can be bought to provide disposable income for your beneficiaries in the event of your passing.
How Does This Insurance Work?
The simplest life coverage contract includes two major rules. The first rule is that the insured person must make monthly premium payments to the insurance company. If they miss three consecutive payments, the policy is null and void until payments resume. Secondly, the insurance company pledges to make a lump sum payment in the event of death. This payment is made after cause of death is provided by experts.
Types of Life Coverage:
There are whole life policies, term life policies, and supplementary life policies available for people to select. A whole life policy lasts from the moment you sign the contract till your passing. A term life policy expires at the end of the term, which is usually 10 or 20 years. A supplementary policy provides a lump sum payment to your beneficiaries, but the financial terms are lower due to the smaller monthly payments associated with this type of insurance.
Major Benefits of Life Coverage:
Life coverage is great for anyone who wants to be prepared for what follows after their passing. Someone who has no beneficiaries may not want life coverage. However, for people who have spouses or families who depend on them financially, life coverage is the best way to protect them in the event of death.