What is Life Insurance and How does it work ?
Life insurance is a policy contract in which it’s holder pays periodic premiums in exchange for a lump-sum death benefit to be paid to the policy holder’s beneficiaries. The lump-sum benefit is paid when the policyholder either passes away or a specific amount of time has passed.
Do you have enough life insurance ?
1 in 5 households with life insurance recognize that they do not have enough. Only 61% of Americans have life insurance coverage. And of those, only 47% of Americans are insured with less than $100,000 in coverage.
Life insurance helps cover more than funeral costs including
- Replacing Income
- Leaving an inheritance
- Paying off outstanding debt or possible debt unknown at the time of insurance policy taken
- Replacing the loss of a caregiver
- Affording future expenses for beneficiaries.
What is life insurance used for and why client buy it ?
Life insurance benefits from a policy is used to help pay for expenses after you pass away relieving one’s family of the burden of unexpected financial expenses. This may include funeral which on average cost $10,000 that include service fees, funeral plot, burial and often higher in very specific large cities. The Orthodox Jewish people tend to request to be buried in the holy land which costs significantly more taking into consideration travel and flight expenses of the body and family members along with plots that often cost over $30,000. Funeral costs also include cremation costs, medical bills not covered by health insurance, estate settlement costs and other unpaid obligations
Doing All You Can To Protect Your Loved Ones
You want the best for your family. But have you explored all your options for sheltering them from life’s storms ?
Studies show American families are not prepared for the unexpected. 68% of American adults do not have a will or trust in place while 37% of American adults don’t have some type of life insurance at all.
Life Insurance Facts & Figures
95 Million US adults don’t have any life insurance at all. That’s 41% of the population. Only 61% of men have some sort of life insurance coverage while it’s less by women at 57%. Many experts recommend at least 10 times this much coverage.
So at what age should you get life insurance ? Many companies only allow you to buy life insurance at age 18 since if you’ve lived to adulthood, it’s most likely your healthy to continue to live a long life and want one. Yet there are some companies that provide life insurance at age 0 such as New York Life and Mutual of Omaha.
The later one waits the higher the premium until you reach 70 + years of age, you will no longer be insurable.