What is life insurance, and how does it work?
As you might know, life insurance is a type of protection designed to help your loved ones cover mortgages, debts, and day-to-day expenses when you pass away. With this type of insurance, you pay a premium to a life insurance company. If you die during the term of the policy, a lump sum is paid out to your family or other dependents. These dependents are known as beneficiaries. While the beneficiaries can choose how to spend the funds paid out, the money is usually used to clear mortgages and other outstanding debts, as well as to cover household bills, and other living costs. Life insurance is important for everyone to have, but if your loved ones currently depend on you to make these payments, COVID-19 has reminded us that good life insurance coverage is especially crucial.
When it comes to how much life insurance to take out, you should, at the very least, opt for enough to cover your debts, pay the bills, keep your car, and maintain your current standard of living. You should include outstanding debt on the mortgage, credit cards, and loans. Fortunately, life insurance premiums themselves tend to be relatively inexpensive, but it’s important to choose the right one for you, and many factors aside from premiums matter.
The exact premium you are quoted will depend on a range of factors, including your age, health, and lifestyle (such as if you smoke). It will also hinge on the amount of cover you want (known as the sum assured), and the length of the term of coverage. Premiums will gradually increase as you get older and tend to be higher if you suffer from a health condition.
There are several types of life insurance. Level term insurance pays a fixed sum if the policyholder passes away after a pre-selected period of time. Increasing term insurance pays an increased amount each year. Whole-of-life cover guarantees your loved ones receive payment when you die, without a medical exam. Over-50s life insurance is designed for older policyholders who tend to have difficulty finding other types of insurance. These types of insurance and many more all exist under the life insurance umbrella.
Life insurance with Blueprints Financial
How would your family or partner manage if your income suddenly stopped coming? This pandemic has stopped the flow of income for many families around the world. In these times, death can occur suddenly, and it’s essential to equip yourself with the right tools in case tragedy occurs.
Our mission at Blueprints Financial is to make our members and their families our top priority. We accomplish this by helping them cultivate, maintain, and protect their wealth. As an independent agency, we work for you, not a single corporation. We are your advocates through today’s tough challenges, and we work with the insurance company on your behalf every step of the way. The experts at Blueprints Financial periodically review your coverage to ensure you have the perfect protection for every phase of life and business. This not only ensures we focus our efforts on you, but that you also receive high-quality services specifically tailored to you and your needs.
Life can be unpredictable, and having a life insurance plan is essential. As important as life insurance is, the complex jargon can make it difficult for a person to understand what they need and what they get from a given policy. Blueprints Financial specializes in all forms of life insurance. It’s critical to find a life insurance plan that not only works for your wallet, but for you as a whole. We will match you with the life insurance plan that suits you and your family’s specific needs.B
