Television commercials boasting the best life insurance companies and the greatest deals on term life insurance rates appear to be a dime a dozen when watching daytime television. Junk mail and door-to-door salesmen market whole life insurance rates, insisting there is no better time than now to invest in a life insurance policy. The average adult can feel overwhelmed by the constant sales pushes from insurance companies, but it is important for those in the market for life insurance to have an understanding of the ways such an insurance policy can be used, both in life and death.
Taking Care of What You’ve Left Behind
When a life insurance policyholder passes away, bills such as an outstanding mortgage or an unpaid debt can be taken care of by the insurance policy. Additionally, holding a life insurance policy offers the peace of mind that, should one be suddenly taken ill, or be killed in an accident, loved ones will be provided for and left with monetary support. Paying into a life insurance policy as a young adult can ensure that your spouse, your children, and possibly even your grandchildren are taken care of after your passing, leaving your loved ones with the assurance that funeral expenses will be covered in the event of your death.
Using a Policy to Fund the Present
Life insurance policies can often be used as loan collateral when seeking funding from major lenders. Additionally, certain types of life insurance policies allow policyholders to borrow against the accumulated cash value of their policy while they are still alive. Another type of insurance, known as “key man life insurance,” may be purchased by business owners to ensure that small businesses can continue operating in the event of an owner’s death.
At American Classic Agency, our goal is to assist our customers in finding the life insurance policy that best suits their needs and provides them with the greatest peace of mind in the event of their passing. Visit us us to find out more about how our agents can help you find a policy that fits your life insurance needs.