What Does Life Insurance Cover?
If you pass away unexpectedly, your family could face costs associated with your burial, funeral and estate management—not to mention the burden of paying any outstanding mortgage or loans in your name. Life insurance can provide peace of mind and financial security by paying a death benefit to your beneficiaries after you die.
We’re here to help you find the right insurance coverage for your needs. Contact Mequell Green Insurance Agency in Glen Allen, Virginia, for more information and to speak to an insurance agent today.
What Is Life Insurance?
Your life insurance policy is a legally binding agreement with your insurer. In exchange for your monthly premiums, your insurance company will provide death benefits to your chosen beneficiaries.
Although individual policies may vary, here are some of the benefits the beneficiary will have from your life insurance policy:
- Income replacement can provide financial support to beneficiaries who rely on your annual salary.
- Final expenses may pay for burial expenses, funeral costs and other estate administration fees.
- Inheritance creation can provide the means to pass down your wealth and assets.
- Estate taxes can pay federal income taxes on your estate.
For more information, contact Mequell Green Insurance Agency today.
What Kind of Life Insurance Should I Buy?
There are two primary types of life insurance for you to consider: term life insurance and permanent life insurance. Here are some things to consider when determining which type of life insurance policy is right for you:
- Term life insurance provides coverage for a set term (e.g., 10 to 30 years). After the term is over, your insurance company will no longer issue death benefits. It is generally less expensive than a permanent life insurance policy.
- Permanent life insurance provides lifelong coverage. As long as you make your monthly premium payments, your insurance company will pay a death benefit when you die. Additionally, you can accrue cash value with your permanent life insurance policy by withdrawing money or borrowing against your policy. Examples of permanent life insurance include universal life insurance, variable life insurance and whole life insurance.
How Much Life Insurance Do I Need?
Your insurance needs will vary with numerous factors. But it can be helpful to think about: anyone who depends on your salary (e.g., children, spouse); the cost to replace services you provide (e.g., child care); and any debts, loans or payments that could fall to your family members when you die.
We’re here to help. Call Mequell Green Insurance Agency to learn more about the life insurance coverage we provide.
Where Can I Buy Life Insurance?
For over 25 years, we’ve been helping our customers find the insurance they deserve. Contact Mequell Green Insurance Agency for more information on our life insurance offerings and to speak to an insurance agent today.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.