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Family 101 | Protect your family's financial future with life insurance



You work hard and plan ahead to ensure the best life for yourself and your loved ones. And not just their current standard of living, but their future as well.

Finances are the key to planning your family's future. Life insurance protects family finances.

Life insurance is not for you. Life insurance is for your loved ones left behind after your death.

What are my life insurance options?

There are two main categories of life insurance: life insurance and permanent life insurance. [19659006] Life insurance for your family

Life insurance is affordable. It is coverage that lasts a certain period of time; it is not permanent cover.

Depending on your age, the life insurance cover lasts 1

0-40 years. During this time, your course will not change. This is one of the best things about buying life insurance early. You can take advantage of very low premium costs.

Another benefit outside the cost is how adaptable life insurance is. In addition to maturity options, coverage options range from $ 50,000 to over $ 65 million. There are also many different equestrian options that can add more benefits to your insurance.

Some of the most popular riders are child riders, premium exemption for disabled riders and accidental death compensation. These supplements usually cost a few dollars per month in addition to your basic policy premium. Learn more about these riders here: Types of Life Insurance Riders

Another benefit of lifetime insurance is the fact that the majority of them include continued insurance options with guaranteed insurance through renewal or conversion. It's a mouthful. Here's what it means.

Understanding Conversion and Renewability Options

You do not buy life insurance that expects you to die. You buy a life insurance policy to prevent financial ruin if you should die unexpectedly during your family's most vulnerable years.

These are the years when you are young newlyweds starting your life together. These are the years you raise children. These are the years you pay off high debts, e.g. student loans, credit cards and mortgages. These are the years you save for retirement.

But if something happens during these years, for example if you are diagnosed with a serious medical condition, you can continue your coverage. Most life insurance policies include both renewables and conversion options.

Both of these options provide a guarantee of insurability. This means that you do not need to reapply and prove that you are still healthy enough to be insured.

. You can renew year after year if you want. However, renewable premiums increase every year. They will not remain fixed as the premiums do during your original term.

The conversion option allows you to convert your insurance to a permanent insurance. You do not have to wait until the end of your term to do so.

Premiums increase with a conversion. Instead of life insurance rates, you will now pay permanent life insurance rates.

Example:

John is a 40-year-old man and father of three children. He works hard as an electrician to support his family.

Ten years ago, when he and his wife got married, they both bought $ 500,000 for 30-year life insurance. His insurance costs $ 30 a month and his wife's $ 25 a month.

John was just diagnosed with thyroid cancer. Although doctors are optimistic about treatment and recovery, John wants to convert his life insurance policy so that he will always have a life insurance policy for his family, no matter when he dies.

With medical bills starting to pile up, it is not in their budget to convert the full face value of $ 500,000. He chooses a partial conversion to an insurance with guaranteed universal life (YELLOW). John converts $ 100,000 into a permanent insurance policy and retains the remaining $ 400,000 as maturity.

Premiums on his insurance policies decrease to $ 21 per month. His new $ 100,000 permanent YELLOW insurance costs $ 70 per month.

If John lives another 20 years, his $ 400,000 insurance will expire but he will continue to have $ 100,000 coverage in YELLOW

If you have a time-specific life insurance, you insure. years (unless you are renewing or converting). You may not die during your period and therefore the insurance will not be paid out. But for those families who suffer a sudden and unexpected death from a provider, the death benefit from a life insurance policy can be life-saving.

Your family can use the money for the death benefit as they wish. Most often, families use the death benefit to pay for a funeral, end-of-life expenses such as health care bills, and ensure that the rent / loan payments can continue to be paid on time so that the family is not forced to take root. [19659029]
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