Life Insurance

Life insurance is something most people have heard of but not everyone understands who should get it and what it’s actually for. Contrary to what you might expect, life insurance isn’t just for the elderly. Instead, it’s a guarantee for your loved ones that they’ll have the financial resources they need in the event of your death. While the specifics can vary from plan to plan, you’re paying to ensure the well-being of the people you leave behind, whether that happens today or decades from now.

Types of Life Insurance​

  • There are two types of Life insurance. ​

  • Term Life and Permanent Life.​

  • It is important to understand the difference.

Term Life

  • A term policy lasts for a specific period of time, such as 5,10 15 or 20 years. If the insured individual dies while the policy is in effect, the beneficiary receives a payment from the insurance company. ​

  • Term insurance has the benefit of usually being cheaper than permanent insurance with equivalent benefits.​

Permanent Life​

  • Permanent insurance — which also includes whole life, variable life and universal life insurance — combines a death benefit with some form of cash value. Part of the premium covers the cost of the insurance, while the rest is set aside and earns interest. ​

  • Generally speaking, you can withdraw the Cash Value early or let it ride for a much larger sum upon your death. You may also be able to borrow money against the policy or use it to pay for future premiums.​

Main Reasons to Have Life Insurance​

  • The most common reason for needing life insurance is if you have dependents: people who depend on you financially, such as children, a spouse that doesn’t work or a parent who you support. ​

  • At the very least, a life insurance policy can cover the costs of your final expenses, such as the cost of a burial or cremation, funeral and outstanding debts, which in turn keeps those things from burdening your family.​

Contact Woodyard Insurance Group LLC.