What Is Life Insurance & How Does It Work?
A life insurance policy is a contract that provides money to be paid to a beneficiary upon the policyholder’s death. See which type fits your needs and budget.
Life insurance can be a savings account for a child or a way to protect loved ones after you’re gone. You have many options when it comes to life insurance, so it’s important to understand each product’s advantages and disadvantages. SmartFinancial’s blog articles answer the most commonly asked questions about life insurance so you can make wise decisions. You can also compare prices on coverages for free, by answering a few questions about yourself.
A life insurance policy is a contract that provides money to be paid to a beneficiary upon the policyholder’s death. See which type fits your needs and budget.
You can choose a life insurance beneficiary or beneficiaries to get paid out with a death benefit after you pass away.
Learn MoreThere are many types of life insurance so it’s important to understand the term limits and benefits of a policy before buying life insurance.
Learn MoreA term life insurance is only active for the stated term, like 10, 20 or 30 years, depending on the policy you buy. If you die within that term, no one receives a cash benefit but you may be able to renew the policy or convert it to a permanent one, depending on your insurer.
Learn MoreUnlike a term-life policy, whole life insurance is a permanent life plan that will cover you through your entire life.
Learn MorePermanent life insurance policies are active during your entire life as long as you make premium payments. Some permanent life insurance policies have a savings and/or investment component.
Learn MoreLifelong coverage and building cash value while investing are some of the benefits of having a universal life insurance policy.
Learn MoreAfter you pass away, your life insurance beneficiaries will receive a death benefit that will help with funeral costs and more.
Learn MoreSome types of life insurance policies build up a cash value. You can cash out a policy or take out a loan against that policy.
Learn MoreThere are many different kinds of life insurance. It’s a good idea to learn what differentiates each one and whether or not you want a savings account or investment opportunity with your life insurance policy.
Yes, you can have more than one beneficiary, and you can decide how much goes to each one.
The insurance company will use the cash value to pay premiums until you die. If you take cash value out, there may not be enough to pay premiums. However, if you do not care to keep your policy active, you can cash it out entirely.
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