Life insurance is one of the most important ways in which we can protect the people we love. Whole life insurance helps your loved ones prepare for the unexpected. On average, families in the US are left with $62,000 of debt after losing a loved one. Life insurance is the best way to prevent financial hardship after you’re gone.
What is Whole Life Insurance?
Whole life is probably what you think of when you think life insurance. It’s designed to last for the rest of your life, with a guaranteed payout at the time of your death. Our guaranteed whole life policy allows anyone between 40 and 80 years old to get a policy, regardless of any health conditions.
Who Benefits from Your Life Insurance?
Anyone who provides financial support for a partner, children, parents or even friends needs life insurance. There are all sorts of family dynamics that might rely on your income to stay afloat. Who are just a few of the people can you protect with life insurance?
- Older parents you support
- Children, whether you’re married or not
- A stay-at-home parent
- A partner you live with
- Your spouse
- A special needs child
- A sibling you’re helping pay for college
- Your business partner
- Someone you cosigned a loan or other debt with
- The person who would be paying for your funeral
- Even a charity you help support
How Does It Work?
Life insurance is pretty simple. With a whole life insurance policy, you simply select your beneficiary — the person you want to receive the benefit. You can then choose the amount of coverage you’d like to have. When you pass away, your beneficiary is paid in a lump sum. They can choose to spend or save it however they see fit, so you don’t need to worry about limitations on what it can be used for.
How Does the Payout Work?
This guaranteed life insurance policy has a Limited Death benefit during the first two policy years if the death occurs from anything other than accidental causes. The Limited Death benefit is 110% of the total premiums paid to date. After the two-year Limited Death benefit period, the full face amount is paid on all deaths.
Common Uses of Life Insurance Benefits
Like we mentioned above, there aren’t any limits to how life insurance benefits can be used. However, there are some common things people pay for using that money. Keep in mind that this isn’t a complete list. Every person has different needs and a unique situation.
- Rent or a mortgage
- School costs
- Assisted care for parents
- Necessities for children
- Regular bills
- Funeral expenses
- Hospital bills
- Support for special needs children
- Paying off shared debt
- Business expenses
- Child care and daycare
- Charitable contributions
When Would Your Life Insurance Payout Happen?
Your life insurance payout only triggers upon your death. It’s crafted specifically to protect your loved ones when you’re gone. That’s why it’s important to make sure your beneficiary knows about your policy.