It’s safe to say that 2020 has been a year unlike any we have experienced before. A global pandemic shattered many businesses and communities while causing deaths and loss. If there’s one thing we can take from this year it’s that the future is unpredictable. With that said, now is a time when many of us have resolved to be more prepared for the unexpected.
More and more of us have been leaning on life insurance coverage to help us through this difficult time. If you have anyone that relies on your income, whether a spouse or a child, it’s essential that you consider taking out life insurance if you haven’t already. Should you die – whether from coronavirus or otherwise – you want to ensure that the loved ones you leave behind aren’t left out of pocket. Life insurance isn’t a luxury that only a few can benefit from – it’s necessary coverage, especially during this time.
What does life insurance cover?
Life insurance is there for your family when you are no longer able to be. When you die, a life insurance policy will release a death benefit to your beneficiary or beneficiaries. This is a lump sum of money that can be used to pay for funeral expenses, pay off remaining debt, put towards your kid’s college education, or be used for daily living costs so that your family can keep the house and maintain the same quality of life. Life coverage is a selfless policy that you purchase to take the financial burden off your loved ones.
The different types of life insurance
• Term life insurance – This is coverage that you acquire for a set period of time, such as 5, 10 or 20 years. It offers basic coverage at an affordable premium that many families can benefit from. After the term has ended, the surviving policyholder will need to purchase a new policy. If the policyholder dies within the term, it will pay out to the beneficiaries.
• Whole life insurance – This permanent cover protects you for your entire life and you will have a fixed premium during your life that accrues value. It will pay out the death benefit regardless of when you pass away. Accrued cash value that can be borrowed against, making it a great option for individuals and families that want flexibility to access cash in an emergency.
Why life insurance is important now
Most life insurance policies cover policyholders who have died from coronavirus. That means if a loved one is taken ill with the virus, there is financial assistance in place should the worst happen. While we are all doing our bit to slow and stop the spread of the virus, it is still very prominent in our society, and precautions can be put in place to protect our loved ones.
What’s more, many Americans are out of work, are unable to pick up a job, or have forced to close their business. Fortunately, life insurance can help, even when you’re living. A whole life insurance policy accumulates a cash value that can then be borrowed against. This means that if a family has one earner out of work during COVID-19, they can tap into their cash reserve in their life coverage for immediate financial assistance.
Work with a qualified life insurance agent to find the right riders and coverage for your needs. If you are unsure about how to get started on your life insurance policy, talk to the professionals at Lou Aggetta Insurance Services in Pleasant Hill. Our experts are ready and waiting to help you determine your life insurance needs and explain how a policy can protect your finances. Give us a call today to get started!