At its core, it's a contract between you and an insurance company where you give them money, and if you were to die (knock on wood), they would give the set amount of money to whomever you choose.
The most important benefit is that you won't be leaving your loved ones with a giant pile of debt and expenses. Think about it. Not only would they have to grieve your death, they'd also have to figure out how they're going to pay for everything (past, present and future).
There are three types of life insurance, with a number of differences between them, but boiled down term, whole and universal plans do the same thing - they payout a set amount of money to someone when you die.
This option is geared toward younger people because it's more of a temporary plan that only covers you for a period of time, usually 10, 20 or 30 years. If you were to die within that time frame, a set amount of money would go to the people/person you choose.
Term insurance is the least expensive life insurance, but most insured's will outlive their policies.
It is an excellent option to ensure coverage until children are out of school or a large debt, such as a mortgage, is paid off.
Whole life policies are more expensive than term insurance, but the premiums never increase during the insured's lifetime. This ensures that coverage will be there when it is needed.
Also, whole life policies accumulate cash values that can be accessed during the insured's lifetime.
Like whole life policies, universal life policies accumulate cash values, but have the added advantage of greater premium flexibility.
Darnielle Insurance is an independent insurance agency with the ability to shop various providers to offer you a choice of insurance products. We're here to help answer your questions.
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Many Americans are struggling financially in the current economy, particularly those struck by lay-offs, and are faced with tough decisions about how to reduce expenses.service
Darnielle Insurance is available to answer your questions. We are located at 1320 28th Street West, Billings, MT 59102. Give us a call at 406-652-4180.