September is Life Insurance Awareness month! Don't know a whole lot about life insurance and what it consists of? Read on!
10 Life Insurance Facts You Might Not Know
1. It completes a sound financial plan.
Life insurance helps with planning for long-term health and happiness for those who depend on your income – in the case that something were to happen to you.
2. There are different types of life insurance.
In addition to employment-based life insurance, there’s term and permanent life insurance! With term, you pay lower premiums, but the coverage is for a specified amount of time. With permanent, you pay higher premiums in the short term and the policies allow you to accumulate cash over time, but the coverage is designed to last the duration that you continue to pay premiums.
3. It’s surprisingly affordable for most customers.
Most people think life insurance costs three times as much as it actually does. According to Life Happens, “Just as a general guide, a healthy nonsmoking 30-year-old man can get a $250,000 20-year level term policy for about $16 a month.”
4. The best time to get on board is during an important life event.
If you are getting married, having kids or bought a new house, now is the perfect time to get life insurance!
5. You can change life insurance.
If you have too small or too large of a life insurance policy, you can change your policy to better match your current life status. Reach out to your local agent, and they’ll get you set up with the right coverage you need!
6. You might need more coverage than you think.
Paying off debts, funeral expenses and dependents the money they will need to be okay financially if you are gone are all great reasons to have life insurance. If you need help figuring out how much life insurance is right for you, contact your local agent!
7. It pays out fast!
Life insurance generally pays out pretty quick due to it not getting wrapped up in estate claims – typically around a month!
8. Proceeds are generally tax-free.
We said it! Compared to crowdfunding options which have tax cuts and fees, life insurance is the way to go.
9. It can protect your family.
Make sure to pay your premiums, keep beneficiaries up-to-date and agents in the loop so that your loved ones know who to call if they need to.
10. It can be more than just life insurance.
Life insurance benefits can become “living benefits”, money you can access now, by using “riders”, addendum or specific policies. Talk to your local agent for more details.