What will life insurance pay for?
Life insurance creates cash at death and can be used to create wealth or conserve wealth.
Some common uses are for the payment of last expenses, setting up a fund to pay a family income, education funds, emergency funds, taxes;and more.
Business insurance uses include key person insurance and the funding of buy sell agreements.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
That is a great question! Life insurance can pay for the expenses of your funeral, your left over expenses, and possibly the income you had earned is replaced for some period of time, depending upon the amount of your policy. It will pay out only when you pass, and unless you named a trust with instructions on what you wanted done with the money, your beneficiary is free to do whatever they want with the money. I hope that helps. Thanks for asking!
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
Life insurance proceeds can be used however the beneficiary sees fit. Many people may look to pay off the parent's outstanding debts (e.g. mortgage) and/or their own, invest the money to help for retirement, or simply save it for a rainy day. In short, it's their money and they can use it however they want - the proceeds are not restricted to any specific type of use.
So why do people buy it? because it creates a ton of cash when the insured dies. People buy life insurance for a number of reasons such as:
1) paying off debts upon their death (e.g. mortgage, cars, credit cards, etc.) so their family members aren't stuck with the bills
2) paying for funeral expenses
3) paying estate taxes
4) income replacement - providing monies/income for family due to the loss of income from the insured's work
5) leaving a legacy to loved ones
Please let me know if I can be of further assistance. Thanks very much.
When you buy a life insurance, you choose a face amount for your policy. That face amount is paid to your beneficiary when you die. Unless you buy a policy that has "living benefits", life insurance only pays for death of the insured person.
As mentioned above, some policies have features that allow you to receive part of the face amount while still alive. The ability to take this money before death can be triggered by terminal illness, critical illness (such as advanced cancer), or chronic illness (inability to care for one's self independently), depending on the policy.
Permanent policies also can provide money while the insured person is still alive. Cash value that is built up in the policy can be borrowed from or surrendered to use for whatever purpose the policy owner desires.
President, Lane Independent Agency, Southern California
Let's see. What will your family need or even want? Those are the things life insurance pays for. Then there are the things they hate to think about, like your funeral and last expenses. They too are paid by life insurance.
Education for your children. Pay off the mortgage for your spouse. Retirement for your spouse. Medical bills for the family. All the things a family needs when both bread winners are alive, these are the things life insurance can cover. Thank you. GARY LANE
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Life insurance creates cash at death and can be used to create wealth or conserve wealth.
Some common uses are for the payment of last expenses, setting up a fund to pay a family income, education funds, emergency funds, taxes;and more.
Business insurance uses include key person insurance and the funding of buy sell agreements.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
So why do people buy it? because it creates a ton of cash when the insured dies. People buy life insurance for a number of reasons such as:
1) paying off debts upon their death (e.g. mortgage, cars, credit cards, etc.) so their family members aren't stuck with the bills
2) paying for funeral expenses
3) paying estate taxes
4) income replacement - providing monies/income for family due to the loss of income from the insured's work
5) leaving a legacy to loved ones
Please let me know if I can be of further assistance. Thanks very much.
As mentioned above, some policies have features that allow you to receive part of the face amount while still alive. The ability to take this money before death can be triggered by terminal illness, critical illness (such as advanced cancer), or chronic illness (inability to care for one's self independently), depending on the policy.
Permanent policies also can provide money while the insured person is still alive. Cash value that is built up in the policy can be borrowed from or surrendered to use for whatever purpose the policy owner desires.
Education for your children. Pay off the mortgage for your spouse. Retirement for your spouse. Medical bills for the family. All the things a family needs when both bread winners are alive, these are the things life insurance can cover. Thank you. GARY LANE