Life Insurance

Life insurance is an excellent option for almost anyone trying to ensure a financially solid future for their loved ones. It may take time to find the policy that works for you, but it is well worth it, especially with the right help.

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What Does Life Insurance Cover?

Life insurance provides coverage in case you pass away and sometimes provides financial assistance while you’re living as well. When you purchase a policy, you are agreeing to pay a certain amount of premiums. A premium is a monthly fee and can range anywhere from less than $10 a month to more than $200 depending on a lot of different factors.

When you purchase a policy, you agree to make payments—in turn, you will receive a payout known as a death benefit. This death benefit is issued when you as the policyholder pass away. It will range anywhere from $2,000 to more than $1 million. When the policyholder passes away, that money will go to their chosen beneficiaries.

The beneficiaries will then use the death benefit the way they agreed to with the policyholder. This can be anything from paying off a mortgage, medical bills, funerals, or virtually anything you need or want. Charitable giving, inheritances, and other philanthropic gifts are also excellent choices.

Life Insurance Policies

As you can see, there is a wide range of payments and death benefits. This is partially due to personal factors such as age, health, and gender, and partially due to the type of life insurance policy.

Whole life policies are the most common, with some of the largest death benefits with relatively low monthly payments. You must purchase them fairly young and in excellent health, otherwise, you may not qualify. There is also a built-in cash value component, which will provide some finances to access before your policy ends.

Universal life insurance is similar to whole life, but with a different cash value component. Investments have more room for return, but also more potential risk. It is not as widely accessible as whole life, but an excellent option for people looking for a sooner return on investment.

Term life policies are also like whole life, but can only be purchased in 10 to 30-year increments. They are much less expensive and can be easily renewed if you do not pass away within the term.

Find a Life Insurance Policy that Works for You

BIM can give you the support you need to find the right life insurance policy. Call today at (732) 458-5000.