If you die while your life insurance policy is active, your insurer will pay your beneficiaries a lump sum, known as a death benefit. Death benefits may include financial support for funeral expenses, burial fees and other costs associated with your passing. It can also provide income replacement for your family and enable you to create an inheritance to pass down your assets to chosen beneficiaries.
The coverage duration of your policy will largely depend on the type of coverage you choose. There are two primary types of life insurance coverage: term life insurance and permanent life insurance. Term life insurance can provide coverage for a set period, such as 10 or 20 years. It is generally cheaper than permanent life insurance, but permanent life insurance provides coverage for your entire life. Other benefits of a permanent life insurance policy may include a level premium and the ability to accrue wealth with your policy. Permanent life insurance may also be called whole life or universal life insurance.
Speak with your insurance agent or contact Ludovissy and Associates to learn which type of life insurance policy is best for your needs.