Life insurance is a simple way to give your loved ones financial security in the future when you are no longer with them. Adults of all ages and income levels use this practical estate planning tool. If you’ve heard of it before but don’t have a policy, you may have many questions about it. Here’s a brief guide about this type of coverage to help you determine whether it’s right for your family. 

Your Guide to Life Insurance

What Is It?

When you pass away, life insurance is a way to give a sum of money to one or more people. This transfer is tax-free and doesn’t need to go through probate.

You choose the policy amount, which is called the death benefit, at the time of purchase. You also designate the beneficiaries who will receive the funds. If you name two or more people, the funds are divided equally among them unless you state otherwise.   

Why Should You Get It?

It will protect your family from financial hardship if you pass away. Benefits can be used for any purpose, including burial expenses, education, a home purchase, or a business startup. This is an investment, a way to give a final gift to your family and the people you care about.

What Different Types Can You Choose?

A term insurance policy expires after a certain period. This policy is the most affordable option. However, if you are still alive by the time your designated period runs out, your loved ones will not receive the benefits. 

Permanent insurance stays in effect as long as you pay the premiums. This is ideal if you’re a younger person or healthy, since you may not have an idea of a period for its expiration. This type of policy can also be variable, which means it’s combined with a savings account for investing.

The insurance agents at Bryan Nelson Ives-Johnson Agency INS welcome the opportunity to help you. Serving Western New York since 1935, this agency provides a wide range of coverage to fit your individual needs. Their staff is friendly and always ready to assist. Learn more about their products online or call (716) 488-1191 to request a quote.