What You Need to Know about Life Insurance

Just this past year, we have been hit with the news of unexpected deaths. It has almost been a year since my sister left this world, and within the last few weeks, a friend lost her husband unexpectedly. That got me thinking about how prepared we are for the future. My husband’s job is not exactly easy. He has to go to job sites and work on pieces of heavy equipment. And there are times like yesterday when he has to work on the side of a busy highway to make repairs. That has got me thinking about life insurance. Questions like What is and do I really need it always come up. Can I get life insurance with no medical exam?

First, let’s talk about what it is. It is a type of insurance policy that provides a financial benefit to your loved ones in the event of your death. Here are some key things you need to know about it:

Types of life insurance: There are two main types: term life insurance and permanent life insurance. Term life insurance provides coverage for a specific period of time (usually 10-30 years) and is typically less expensive than permanent life insurance. Permanent life insurance provides coverage for the rest of your life and often includes a savings component.
Premiums: The amount you pay for it is called the premium. Your premium will depend on several factors, including your age, health, and the amount of coverage you want.
Death benefit: The death benefit is the amount of money that will be paid out to your beneficiaries when you pass away. You can choose the amount of the death benefit when you purchase the policy.
Beneficiaries: The beneficiaries are the people or organizations that will receive the death benefit when you pass away. You can choose one or more beneficiaries when you purchase the policy.
Underwriting: Before you can purchase a policy, you will need to go through the underwriting process. This involves providing information about your health and lifestyle and may include a medical exam.
Riders: Riders are additional benefits you can add to your policy. For example, you may be able to add a rider for accidental death or a long-term care rider.
Estate planning: It can be an important part of your estate plan. It can help ensure that your loved ones have the financial resources they need after you pass away.
Shopping for life insurance: When shopping for it, it’s important to compare policies from different providers and understand the terms and conditions of each policy. Working with a licensed insurance agent can help you find the right policy for your needs.