There are several reasons to have a life insurance policy in place, including the peace of mind in knowing that your loved ones will be financially protected when you pass away. The agents at Knippenberg Insurance Inc. in Cumberland, MD are explaining the reasons life insurance is important to have and the different types of policies that are available to help you decide which one is best for you.
Reasons for a Life Insurance Policy
A life insurance policy is important to have in place for a multitude of reasons. One of them is the fact that the meaning of your debts can be paid off when you pass away which will relieve a large amount of stress from your loved ones. This is especially important if you are the main breadwinner of your family. Your loved ones will be grieving the fact that you have died, and a life insurance policy will help them to not worry about things like how to make the car payment or pay the house payment.
A life insurance policy can also help with your funeral and burial costs. Keep in mind if you have a small policy through your employer, though, that is usually only enough for your funeral and not enough to keep your loved ones financially stable.
Types of Life Insurance Policies
There are three main types of life insurance policies available.
Universal Life Insurance
The most popular life insurance policy choice for most people is a universal life insurance policy since you can borrow money from it while you are still alive. This means you can pay off large debts, such as your home mortgage before you pass away which will help you have a better quality of life before you die and will provide your family with security.
Term Life Insurance
Term life insurance policy is only paid out to your loved ones if you pass away during the term in which the policy is in effect. You get to decide how long each term is which can be one year or 50.
Whole Life Insurance
Whole life insurance, sometimes referred to as permanent insurance, will pay a death benefit when you pass away. The three major types of whole life insurance policies include variable universal life, universal life, and traditional whole life.
To decide upon the right life insurance policy for you and your family, contact the agents at Knippenberg Insurance Inc. in Cumberland, MD today!
