Permanent Life Insurance Policies For Your Family
Life Insurance is a policy that people buy from a life insurance company, which can be the basis of protection and financial stability after one’s death. Its function is to help beneficiaries financially after the owner of the policy dies. It can also be a form of savings in the long run if you purchase a plan, which offers the option of contributing regularly. Life Insurance offers a way to replace the loss of income that occurs when someone dies (usually the person who produces the majority of income in a family situation). It is a contract between you as the insured person and the company or “carrier” that is providing the insurance. If you die while the contract is in force, the insurance company pays a specified sum of money free of income tax — “cash benefits” — to the person or persons you name as beneficiaries.
With a Life insurance policy you have it at the back of your mind, that your near and dear ones will be safe even when you will not be with them. This provides security to your family, protects your home mortgage, helps you take care of your estate planning needs and look at other retirement savings/income vehicles. Families with young children have a clear need for life insurance. If both spouses work, the loss of one income will cause the family immediate economic hardship and make it harder for them to realize future goals, such as paying for the children’s’ education. But even if one spouse works “inside the home” and doesn’t bring in a formal income, his or her death will require the surviving spouse to hire child care, housekeepers and other professionals to help run the household – and that can be a significant new expense. If you are married without children or single, then you may need life insurance to protect your partner or surviving family members against the costs associated with your death.
Some types of life insurance available in the market today are — permanent life insurance policies which have a cash value that you can obtain by cashing out the policy or by borrowing against it. Another type of insurance is term life insurance policies are available as well.