Life insurance can protect your loved ones from unexpected expenses following your death. These plans provide a large payment to your beneficiaries when you die, creating a valuable cushion that can help replace your income after your death. There are many life insurance products available. Here’s what you need to know before buying.
Insurance companies offer life insurance as a means of providing people with the ability to give their loved ones and associates security in the event of their death. Life insurance policies require monthly premiums to maintain, and if you stop paying them your coverage may end. If your policy lapses, you will not be entitled to the death benefit stated in your contract.
Life insurance policies pay out a cash benefit upon the death of the insured. This payment is often called the death benefit. The death benefit is given to anyone stated as the beneficiary in the insurance contract and multiple beneficiaries can be named. Some insurance policies allow the policy owner to dictate specific terms for how the money is to be dispersed. For example, you may be able to set the death benefit to be dispersed when the beneficiary reaches a certain age.
The amount of money given to your beneficiaries is set when you sign the contract. Life insurance death benefits are usually between $10,000 and $100,000, but they can be millions of dollars in some cases.
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To purchase life insurance, you must qualify for it. This often means you must take a medical exam and answer some medical questions. Your answers will be used to determine your risk level and the insurance company will decide whether to insure you based on that. If you are deemed to be too risky, the insurance company may decide not to offer you any form of coverage. In this case, you may be able to purchase another form of life insurance called final expense insurance.
The cost of life insurance varies based on your location, your health condition, and what benefits you choose. The higher your death benefit, the higher your coverage will cost in most cases. You can also add additional benefits by purchasing certain insurance riders. That will also increase the cost of life insurance. In general, you can expect to pay anywhere from $25 a month to $150 a month for life insurance. To get a more accurate idea of what life insurance will cost you, please get in touch with our professional and dedicated staff..
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Residents of Petoskey, MI have numerous options for life insurance. Get the coverage you need today. Contact us to schedule a free quote with one of our talented representatives.