Life insurance helps preserve the standard living of your family.
Most individuals who are not insured presume that life insurance is costly, but this is not the case all the time. While it seems not affordable for others to get life insurance, having a cheap one is better than nothing. And why do you need this insurance? The quick answer is simple: you must have it if you love and care for someone. Life insurance is a sure protection for others, especially your loved ones.
1. Giving protection to loved ones
This insurance promises protection because it provides a death benefit claim, returns lost income, gives inheritance to heirs and pays the insured person’s ultimate expenses. Aside from these, life insurance is also important if you want to leave a donation for a charity work or pay estate taxes.
2. Amount of insurance you need
If family protection is the main goal of getting life insurance, in case you die, you’ll leave enough money to pay off your home mortgage, your debts and leave finances to your family. Members of the family will keep on living with the kind of life comfort you have given them. It’s vital to include in the estimated calculations your ultimate expenses which include burial and funeral expenses and other expenses for setting your estate.
3. Kinds of life insurance
Typically, there are two kinds of life insurance to choose from: the term and the whole life insurance. Term insurance covers a particular number of years to remain valid and then it expires. On the other hand, whole life insurance is designed to stay in place as long as the insured individual remains alive, with portion of the premium fund to serve as a savings account.
4. Term insurance
Term insurance offers protection to the insured person only for a specific number of years where the insured individual and his family require protection. The cost of insurance refers to the amount of premium paid and there’s no building up of cash value. Compared to whole life insurance, the paid premium is much cheaper.
Term insurance is suitable if you need a short-term protection. For instance, you need it while your kids are growing up, while you’re paying your home mortgage, or while funding your own business.
5. Whole life insurance
Whole life insurance is also known as “permanent” insurance. Being the insured person, it is intended to stay in place for the rest of your life. Also it has a savings vehicle, because a percentage of the premium is credited for your cash account. Every year, the cash value goes up every time you pay. Whole life insurance has an attractive variation which is the universal life insurance providing flexible benefits and premiums.
6. Living benefits
With the current whole life insurance in the market, you don’t need to lose your life before you can collect on them. There are optional riders available to offer good life benefits. For instance, an accelerated benefit rider pays part of the premium early to the one who is insured, provided he has 6 months (or less than) to live. Furthermore, a nursing home rider is beneficial to help pay the expenses of an assisted-living facility or a nursing home.
7. Reputable company
Find a reputable life insurance company with rated “A” standing. No one can provide cheaper rates than the one you trust most because it’s already proven by others.
To learn more about the required Life Insurance in Florida, please contact us at DMG Insurance and Financial Services, Inc. (http://www.dmginsurance.com) at 543 N state Road 7, STE 106, Royal Palm Beach EL, 33411, phone 561 422 7071, Fax 561 422 7072.