Although it’s impossible to predict when unfortunate events in life may happen, you can start preparing for them now. Life insurance is a financial tool that grants you peace of mind when it comes to uncertainties about the future, and it’s something that’s best acquired while you are still young and healthy. Here are answers to some basic questions you might have about life insurance.

What You Should Know About Life Insurance

What does life insurance cover?

Generally, a life insurance policy is a flexible coverage that offers death benefits and safeguards your family's finances if you pass on unexpectedly. Some necessary expenses that are covered include your student loan debt, living expenses for your family members, college tuition for your kids, and mortgages. Death benefits can also take care of funeral costs and other end-of-life expenses.

Who needs life insurance?

Everyone should take advantage of life insurance policies, especially young adults. The costs are less expensive when you are young and healthy because of lower premiums, and it will be easier for you to qualify for policies. Remember to update your coverage whenever you gain new financial obligations or undergo significant life changes such as marriage, house purchase, the birth of children, or the start of a new business.

How does life insurance work?

When you buy a life insurance policy, you are creating a contract between you and the insurance company. You will choose the amount and type of coverage that best suits your needs, and you will pay a premium to keep the policy active. The payment can be a lump sum, or a monthly, annual, or semi-annual payment. In the event of your passing, your beneficiaries will receive the specified death benefits in your policy. 

What is a beneficiary?

The person or organization who will receive the benefits of your life insurance policy is your beneficiary. You have the option to name your beneficiaries and determine the distribution of your benefits. If you don’t list your beneficiaries, your insurer will be the one to allocate the insurance proceeds as stipulated in your insurance contract upon your passing.

Protect your finances and that of your loved ones as early as possible. Turn to Comaltex Insurance Agency Inc in New Braunfels, TX, for a reliable agent who will provide you with expert assistance regarding life insurance, auto insurance, property insurance, and more. Call them today at (830) 625-7511 to get started on choosing the right coverage, or visit their website to send them a message online.