Life insurance can be essential for protecting your family after your death. It’ll ensure they’re provided for financially and may lessen the burden of funeral and medical costs at the end of your life. If you’re considering buying a policy, you may have many questions about it. To help you find the right one, here are a few of the common questions people have about this type of coverage. 

A Guide to Life Insurance

What do these policies cover?

They provide financial support for your family for funeral costs and expenses related to end-of-life medical care, which can be expensive. They also help your family cover expenses related to daily living costs, which is helpful when the primary breadwinner is deceased. Proceeds of life insurance policies can also be passed along to heirs for estate planning purposes.

Are there different types of policies? 

Yes. Term life insurance covers you for a pre-specified period, which usually ranges from 10 to 30 years. These policies are reasonably priced, which makes them ideal for people on tight budgets. However, if you outlive the term, your family won’t receive the benefits upon your death.

On the other hand, whole life insurance remains active as long as you keep paying premiums. While they’re more expensive, they are also tax-deductible. This means that upon your death, the proceeds are given to your beneficiaries tax-free.

Who needs this type of insurance?

If you have a family and are responsible for providing for them financially, having a life insurance policy in place is a must. It’s also a good idea to secure a policy while you’re relatively young and in good health. This is because rates will be lower the younger you are.

Who can I choose as a beneficiary for my policy? 

Anyone you like. It can be a relative, friend, or company. You can also choose more than one person and split the proceeds between them. When choosing an heir, you’ll need to complete the beneficiary designation form associated with your policy. 

If you have insurance questions in Crandon, WI, Northwoods Insurance Agency is here to provide answers. They help you find the most affordable insurance policies thanks to their status as an independent insurance company. They also offer many different products, including auto, health, homeowners, and business coverage. Learn more about life insurance by visiting them online or call (715) 478-2215 to request a quote.