Many people feel that life insurance is unnecessary because they aren’t the right age or aren’t in the right circumstances. The truth is, nearly everyone can benefit from some type of coverage. If you’re considering a policy but still have some reservations, below are the answers to some common questions.

Common Questions About Life Insurance

How does life insurance work?

In general, a life policy pays out a death benefit if you die while the coverage is in effect. You designate one or more beneficiaries to receive the payment. Beneficiaries can be people, trust accounts, a charity, or even your estate. Unlike a will, life insurance does not need to go through probate court before funds are distributed. Payment usually occurs as soon as there is a valid death certificate.

How are whole life and term life different?

Term life is temporary. It lasts only for a term — often 5, 10, or 20 years — during which time your beneficiaries receive a payment if you die. Presumably, after the term is up, your kids will be able to care for themselves and your spouse will have the wherewithal to do the same. Whole life lasts until you die or stop making payments. It also contains an investment arm that lets you put away money for retirement. Whole life is more expensive and may require a health screening, whereas term life usually does not.

Do you need life insurance if you don’t have kids?

Although children are a common beneficiary, there are other reasons to purchase coverage. For instance, if you want to provide for your spouse, care for an adult family member with special needs, or pay off a mortgage, a life insurance policy is beneficial.

Why else might you want life insurance?

If your kids are grown, your spouse is provided for, and you have no outstanding debt, a life insurance policy can help you prepare for final expenses. A funeral service and burial can cost thousands of dollars, but a death benefit will cover it so your survivors don’t have to. This eases the burden on your family and friends during an already difficult time.

To discuss your life insurance options with a friendly, experienced insurance agent, contact Tim Bryan Insurance in Andalusia, AL. Tim is both a Life Underwriting and Training Course Fellow® (LUTCF) — an achievement that requires advanced coursework centered upon ethics, financial management, and customer service — as well as an active member of the local Chamber of Commerce. Visit the agency’s website to view location details or call (334) 222-1460 to request a quote today.