What Life Insurance Does

what life insurance doesRecently, I found myself deep in a conversation with someone about what life insurance does. It started out as a conversation about what life insurance is. As we started talking, we began to realize that it’s not so much about what it is but what life insurance does for people when it’s used properly. My buddy was surprised to discover all the ways life insurance can be used to make life easier for our loved ones.

The most basic form most of us are familiar with is a policy we use to provide financial protection to our families. The most common form of insurance that covers this need is referred to as Term Life Insurance. What it does is provide a level of financial security to your family to cover them in case you get sick or die. Many carriers provide what is called “Living Benefits” which means you don’t actually have to die before the policy starts to pay. If you are diagnosed with a critical illness, injured to the point that you are unable to earn income, diagnosed with a terminal illness, or unable to perform 2 of the six activities required for daily living (ADL), your policy can begin paying the benefit to your family while you are still alive.

This sort of policy is usually a great call for young families during their income producing years. Like car insurance, you may not need it now, but if the time comes when you do need it, your family will be glad you put this coverage in place.

Another level of coverage is what we know as Whole Life Insurance. It can provide the same level of protection that the term policy provides but it lasts forever as long as you are paying the monthly premiums. What life insurance does in this case goes beyond financial protection in the even of sickness, injury, or death. This sort of policy can also build up a cash value that you can borrow against for emergencies, life events, etc…

When used properly, a good policy can also help with debt relief.

When planning for your financial future and the well-being of your loved ones, a solid understanding of what life insurance does can help you know you are making the right choice for your family.

If you would like to speak with a qualified licensed life insurance agent, just fill out the form below. We will be happy to talk about your options and help you make a good choice for those you love.

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