What Is Life Insurance?
A life insurance policy requires an insured individual to pay premiums to an insurance company. In exchange, the insurance company pays a death benefit (lump-sum payment) to the insured person’s beneficiaries in the event of his or her death. The purpose of life insurance is to help the insured’s dependents continue to meet their financial needs should the insured person pass.
Why Do I Need Life Insurance?
If you have no dependents, you might not need to invest in life insurance. But if anyone relies on you financially, it’s a must-have. Life insurance will provide for your spouse, children, or other beneficiaries should you pass. Your life insurance policy could also benefit a life partner, sibling, business partner, etc. If anyone depends on you to meet their financial needs in any way, you should consider life insurance.
What Does Life Insurance Cover?
Although the specifics vary, life insurance would cover the financial needs of your family were you to pass unexpectedly. Beneficiaries can use the funds in a number of ways, but they usually cover at a minimum:
– Funeral costs and end-of-life expenses
– Loss of income
– Cost of living expenses
– Trusts and charities
– Retirement and estate planning
– Business continuation
Types of Life Insurance Policies
There are a number of different types of life insurance policies. The one that works for you will depend on your beneficiaries’ needs, your assets and debts, your earning capacity, and other factors. The agents at Focus1 Insurance Group will work with you to understand your financial situation to recommend the right type of policy for you.
– Term Life: You’ll pay for coverage over a specific period of time, and your family will receive benefits if you pass during that period.
– Whole Life: You’ll be covered for your entire life, with a guaranteed payout.
– Universal Life: Add money to your premium for the insurance company to invest, and they’ll apply funds to your premiums or allow it to accumulate interest.
– Variable Life: Choose from more investment opportunities, including stocks, bonds, and mutual funds. Funds can be used towards premiums or accumulate interest in the account.
Life insurance may be foreign to many Oregon families, but we’ll sit down with you to hear about your financial situation so we can find the best plan for you.
What Questions Should I Ask My Agent?
During our consultation, we’ll explain the ins and outs of your policy options and answer all your questions. Even if you don’t purchase life insurance through us, we encourage you to ask your agent these questions:
– What happens if I cancel my policy?
– Should I choose term or whole life insurance?
– Will my policy offer coverage if I become disabled?
– Are there any exclusions?
Learn More Today
Life insurance is one of the most important investments you’ll ever make, and we want to make finding coverage easy for you. We’ll shop around and compare policies from dozens of providers to find one that’s right for your family. Call Focus1 Insurance Group today at (541) 951-9559 for your free quote!