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Benefits of Life Insurance Coverage

The advantages
There are many benefits to holding an active policy. The benefit of coverage today gives you the peace of mind that your loved ones will be cared for financially in the event for your death. A policy allows you to plan for, and meet many financial obligations that may be passed on to your family if no such plan is in place. These obligations may include payments on your home mortgage, business loan or ensuring your children's college is paid in full. Another advantage of coverage is you can purchase the amount of protection specific to y our financial needs and circumstances. Insurance is simply an affordable way to protect your family's financial future.

The most fundamental type of policy is known as Term Insurance. It is good for a particular period or "term" of time from one year, ten or up to 30 years. Term insurance guarantees that your coverage amount remains level for the lifetime of the covered individuals. To determine the amount of coverage you should purchase, you can get a Term Insurance Quote Online.

Yet another advantage of carrying a policy is that additional coverage is available to help insure your changing life style needs. You can purchase riders to add to your existing term policy. A few of the typical rider's available include:

Waiver of Premium

In the event that the insured becomes disabled, this rider will pay the premiums on your policy for the duration of its term. The definition of “totally disabled” may vary from one insurer to another, making it important to be aware of the terms and conditions of this rider.

Accelerated Death Benefit

This rider is included in most policies at no additional cost. It provides that a portion of the death benefit becomes available to help with expenses, should the insured be diagnosed with a terminal disease which causes their life span to shorten considerably. Also, the definition for “terminal illness” may vary depending on the insurer, so make sure you are familiar with the terms and conditions.

Child Protection

No one wants to think about the death of a child. However, in addition to relieving the financial burden to the family, this rider also typically provides a guaranteed conversion option to a permanent policy, multiplying it up to five times the original face amount. This essentially guarantees parents the ability to purchase lifetime coverage for that child without requiring a medical exam.

Some Other Common Additional Benefits or Riders
Present

The primary advantage of carrying coverage is to help support current and ongoing expenses. When you buy an insurance policy, you have the opportunity to choose a person, known as the beneficiary, who will receive the benefit payment after the death of the insured. Policy benefits are designated to beneficiaries who can use the proceeds from a policy to pay immediate expenses such as:
  • Pay off funeral costs
  • Pay for medical bills
  • Final estate settlement costs
  • Pay Taxes
  • Pay off Legal fees
  • Outstanding debts
  • Provide for food and clothing
  • Pay utilities
Future

A policy helps secure your family's future. The proceeds of which can help your family with future financial obligation such as:
  • Pay ongoing living expenses
  • Pay for children's college tuition
  • Establish a retirement fund for spouse
  • Business sustainability
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