Ever wonder whether investing in life insurance is important? The simple answer is yes!
The world has been through many changes in the last few years, and we have seen some scary events, including the Covid-19 pandemic. These changes have also presented us with a lot of new challenges, including physical and financial constraints leaving people to seek ways to tackle them.
So, if you’ve been trying to keep your head above water recently, something like opting for life insurance services can be a great solution at your disposal! These services are designed to help you pay off debts or provide a lump sum payout when someone close to you passes away.
Thus, we won’t be wrong to say that opting to buy life insurance services is an investment with a purpose. An individual can purchase a life insurance policy from a trusted insurance agency like Covered California Certified Agent to provide for themselves and their family members in the event of death, or they may invest to leave an inheritance to others. A single policy may pay out a large amount of cash at the time of death or continue to accrue benefits over the years until you need it.
These potential benefits from adding a life insurance policy make it an excellent decision for anyone who wants to financially secure their loved ones in the future.
Want to learn more? Here’s all you need to know about investing in a life insurance plan:
The Actual Cost Of Buying a Life Insurance Policy
Based on the 2020-21 research report, there seem to be approximately 41 million people within the U.S. who claim to be needing life insurance yet do not currently have it. The propensity for people to overrate the expenditure of something like this can help explain the numbers.
People may hesitate to purchase the necessary life insurance due to perceptions of affordability and worth. A $250,000 life-term insurance policy for a 30-year-old healthy person would cost at least $500 per year, said more than half of survey respondents as per the research report.
However, the typical price is more like $160 per year. This difference between perceived and actual costs is massive and, frankly, misleading.
What Entails A Life Insurance Plan?
For those who don’t know, users and insurance agencies sign an agreement when a life insurance policy is bought. The insurance agency provides the listed beneficiaries with a lump-sum amount in turn for monthly premiums. This payment is also widely recognized as a cash amount for the death benefit.
The amount paid is later available for usage as per the will of the listed beneficiaries. This often involves paying regular bills, a mortgage, or a child’s college costs. Investing in insurance coverage for life acts as a reliable safety net and can guarantee that your loved ones can peacefully reside in your current home while compensating for the budgeted expenses.
The life insurance policy is broadly divided into two main categories:
- Term life insurance:Offers protection for a specific period
- Permanent life insurance:Offers lifetime protection
What Gets Covered In A Life Insurance Plan?
Suicide during the first 2 years of ownership of the policy is the main exclusion from the general rule for insurance coverage that otherwise tends to cover all reasons for death. Life insurance pays for deaths due to illness, ailments, collisions and accidents, and violent crimes like homicide aside from that previously mentioned limitation.
A life insurance provider, however, may reject a claim despite the reason for death if it thinks there was a deliberate misinterpretation or false claim on the application, particularly if the death occurs within the first few years of purchasing the policy. The life insurance provider might reject a claim from the beneficiaries, for instance, if anyone lies on the application about their well-being or other details.
In other, more specialized situations, a life insurance claim might be rejected if the benefactor killed the policyholder or if the assertion is contested.
How Can You Enjoy Tax Benefits With A Life Insurance Policy
The most obvious reason is that the death benefit will reduce your estate taxes and are redeemable on total premiums paid.
So, if you’re married, it can also reduce your estate taxes if one spouse dies and the other has a life insurance policy on them. Hence, when you die, all of your assets will pass to the named beneficiary of your policy.
Get Our Reliable Term-Life Insurance Services in California
If you’re searching for a reliable and experienced insurance agency to get trusted term-life insurance services and secure the future of your loved ones, Covered California Certified Agent is the perfect partner for you!
Our team of professionals is known to offer different types of health insurance plans, including but not limited to life insurance, employee insurance, dental insurance, and group insurance programs for you!
For further details, visit our website or reach out to us today by calling 800-771-7653.