Life Insurance and Its Importance

​Although it isn’t known when someone’s final hours might be, preparing for what’s to come is essential. Life insurance policies exist to help the insured and their dependents be ready for final costs.

The Provisions of A Life Insurance Policy
Life insurance policies are composed of two main provisions: a death benefit and a premium. Different types of life insurance policies have both, while others include cash value components.

• Death benefit (face value) is the amount given to the policyholder’s dependents when the insured dies. 
• Premium is what the insured pays for the insurance. 
• Cash value may be a savings account that the insured can use during their life. It may also be an amount the insured can use to pay premiums. 

Types of Life Insurance
There are many types of life insurance that insurance agencies offer. Of course, different types suit different people. Here are some of them:

• Term life insurance policies are those that end after a certain number of years. Commonly, these last for 10, 20, or 30 years.
• The increasing term refers to life insurance policies whose premiums increase as you get older. 
• Permanent life insurance lasts the policyholder’s entire life unless s/he stops paying. Typically, it costs more than term life insurance.
• Universal life is another type of permanent life insurance that earns interest. Additionally, its premiums and death benefits can be adjusted in the long run.
• Another type of permanent life insurance is burial or final expense insurance. It includes death benefits that the insured can use as they wish.

Other Uses for Life Insurance
Life insurance is known to provide help to those in need during their final hours. However, it has more uses than one might think.

• Life insurance policies can help fund retirement, specifically the policies that come with investment components. 
• Death benefits are usually tax-free. 
• Many life insurance policies have a cash value accumulation. Policyholders can borrow against these types of policies. However, doing this can decrease the policy’s death benefit.

Conclusion
Being prepared for what’s to come is essential. While death is guaranteed for everyone, having the financial capability to cover final expenses isn’t. Life insurance policies provide this kind of protection. 

At Roper Insurance, we aim to provide comprehensive insurance policies that make your life easier. We want to help you get the insurance that fits your needs. You can get more information about our products and services by calling our agency at (828) 697-6709. Get your free quote today by CLICKING HERE.