The Basics Of Life Insurance

​There are plenty of things to consider when purchasing a life insurance policy that will help protect you and your family's financial future. This simple guide to life insurance will help make it easier and simpler to understand the fundamentals of how life insurance works and the different types of coverages. 

This way, you will know how to decide which plan is the right one for you.

What is a Life Insurance Policy? 
Life insurance is a contract between an insurance company and a policyholder to give you coverage to protect you based upon your premium. A life insurance policy provides a death benefit to the policyholder's beneficiary, usually a spouse, upon its death. 

Upon passing, the beneficiary will file a claim with the insurance company and submit proof such as a death certificate to prove the policyholder's passing. 

If an agent works with the family, the beneficiary can contact said agent to help him with all the necessary paperwork. The beneficiary could also contact the company directly because there is always a claims representative available to help him with the process. After receiving all required documents, the beneficiary will be issued the death benefit payout.
 
Term Life Insurance 
Term Life Insurance is a policy that assures payment of a specified death benefit if a policyholder dies during a particular term. Once that term expires, the policyholder could renew or extend for another term, change the policy into permanent coverage, or terminate the life insurance altogether. 

Benefits: 

• Less expensive than permanent insurance 
• Convertible to a permanent policy
• Leave tax-free money to your family when you pass away. 

Permanent Life Insurance 
Permanent Life Insurance is a policy that does not have an expiration date. This type of policy is a combination of a death benefit and savings. 

The two main types of permanent life insurance are universal life and whole life. Universal life insurance offers savings and your death benefits. However, it has several premium structures, and earnings are based on market performance. 

Meanwhile, whole life insurance provides full coverage to the policyholder's full lifetime, and the savings grow at a guaranteed rate. 

Conclusion 
Even a simple funeral could cost a lot of money. Having life insurance will help ease the burden a little bit on your family at the time of your passing. 

Make sure you choose the right insurance policy to cover all the bases that you will leave behind. The money that your family will receive from a life insurance policy can help them maintain your loved one's standard of living.

At Roper Insurance Services, 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.