06 Apr Family Life Insurance Policies You Should Know About
Tips You Should Know About Family Life Insurance Policies in South Florida
While it’s safe to say that when it comes to the discussion of Life Insurance, most people would rather not talk about it. It’s not a comfortable discussion, but the truth is the inevitable is bound to happen sooner or later. Of course, while we hope for later, it’s better to be prepared for any unforeseen event than to not be prepared at all. This is especially true for new parents. Family life insurance plans can be a real blessing and what most people don’t know is that it’s very affordable. In this blog we point out a few things for you to be thinking of when contemplating life insurance whether it’s for you or the whole family.
First, let’s look at the breakdown of how life insurance works:
Insurer Owner Insured Beneficiary
The insurer is the insurance company that you pay your premiums to.
The owner is the person that paying the premiums on the life insurance policy.
The Insured is the person that is covered under the policy.
The Beneficiary is the person(s) whom receives the money if something should happen to the Insured Person.
In many cases where new parents are involved, the parents will take out a life insurance policy on themselves but not their children. As a new parent, there’s a lot of responsibilities and this may not be one that is at the forefront of your mind. However, a child’s first year in life can be very sensitive. If your child was born with birth defects or illness of any type, then this can be a crucial time to add a life insurance policy. During unplanned events you’ll be forced to make a lot of decisions. The cost of such events is never something people are contemplating. Keeping peace of mind is important and can lead to a more stress free quality of life when you have your financial plan in place.
Term life versus Permanent life is another area for you to do your due diligence. Term life is generally the simplest and least expensive. You can pay for these policies for years and if no one dies, you may never see that money again. However, knowing it’s there if you need it is well worth the cost involved.
Need help choosing an affordable life insurance policy in Boca Raton? Call Us Now!
Permanent life insurance has a cash value or savings attached to it. After so many years have passed and if the insured is still living, the policy can be liquidated and you will see a return on investment. For people with hefty estates or wealth, they tend to fall into the category of permanent life insurance because of the tax deductions and cost efficiency of the policy. Either way, life insurance is not an investment. This is a tool meant to be in place in case of emergencies. By always keeping this in the back of your mind you are at much better standing.
Know your options for canceling but hire a professional to help you in making these valuable decisions. You can call on the assistance of a lawyer who specializes in wills and trusts or you can seek the help of someone who is certified in death planning. Whether you hire a lawyer or other party to stand by your side to make these choices, make sure that you call on someone whose reputable.
Remember that life insurance policies are contracts between you and the insurance company. Find out what ALL the legalities are for both holding the policy long term, and short term and what, if any are the penalties to cashing out early.
By taking the time out to gather all the information to make a conscious decision you are not only going to be that much smarter, you can rest easier knowing that you and your family is covered and will have one of the most important elements taken care of if anything should go in a different direction.