3 Commonly Asked Questions About Life Insurance
As youth and young adults start to reach adulthood and start a family and career they might be wondering about important things like life insurance. Life insurance should be carried by every adult and is the best way to protect those that you love. Here are some things that you need to know about life insurance.
How Does Life Insurance Work After You Die?
Many people are confused about how life insurance works, so they avoid purchasing it because they don't understand how beneficial it can be to them. For example, they might think that because they have savings they don't need life insurance; however, this generally isn't the case. You need both life insurance and savings. Life insurance, unlike your savings, cannot be taxed after you pass away. Your family may have to pay an estate tax on the estate left behind, life insurance is completely exempt from that. Second, life insurance is paid on death. This means that as soon as the life insurance company has a death certificate they will write a check to the person that you named as beneficiary. Lastly, you can get an estate-planning attorney to help put the money into a trust, so that your family has an account that they can access when needed to get the life insurance quickly.
What Do You Need To Do To Get Life Insurance?
Getting life insurance is a little more involved than buying something like car insurance. This is because the life insurance provider must determine how much of a risk you are. Thus, you will have a medical professional come to your house and do a physical. They will take your weight, a list of all of your medications, a sample of your blood and urine, and have you fill out an assessment of risky activities, like if you sky dive. Then after they get the results they will use how healthy you are, and the risks they find to calculate how much you need to pay each month to get life insurance.
Who Should Have Life Insurance?
Everyone should have life insurance. Even if you are a higher risk, you still can get an affordable plan, so people really shouldn't be avoiding life insurance because of the money. Even if you aren't married you should have life insurance, your debts, funeral expenses, and medical bills will all pass to your family and loved ones. Make sure they are not burdened financially after you pass away.
For more information, talk to a professional like Sunset Insurance Agency.