Having elaborated on a pre dominant concern, we now proceed to the matter of truly understanding and gaining an in depth knowledge on how life insurance really functions. What is there to know about it? Through explanation, and via the help of an illustrative example, we hope to leave you far more conscious of and educated on life insurance policies and their key elements, than you ever were before.
Loosely coined, life insurance can be explained as a process that sets you on the path of becoming independent, financially, and proceeding to safely store a back up plan, that you can count on, and refer back to in times of need. Simply termed, it is a course of action, that leaves your family far more sheltered, safer and secure than they otherwise would be in the absence of a policy, and leaves them well placed in the world, so that they can move on with their lives progressively, once you are no more.
It can be thought of, pursuing an un conventional route, as a savings account, without the savings cashed in. An elaboratively helpful example is as follows: suppose a bank provides you with a savings account, that holds $30,000 worth of your future funeral expenses. All that they ask of you is to pay them $70 monthly, to secure the money in the bank. Upon your death, the entire amount would be released to your family, which is precisely how a life insurance policy works. What percentage of it you have paid to the bank upon your death is of no matter – your family would take home the same amount. (Take note of the fact that rounding off to $40,000, merely through saving $70 a month, would otherwise take you approximately 47 years).
In some cases, e.g. the unfortunate incident of a terminal illness, a few insurance companies would even enable you, and aid your family, by making up for 90% of your death benefit, in terms of your chosen policy, and its terms of agreement. This hefty amount could largely cater to your medical bills and offer high coverage on that front.
People suffering from a terminal illness had assembled bills as high as $32,000, a finding analyzed by Arcadia Healthcare Solutions deduced. The National Funeral Director’s Association, too, equipped us with a figure on the average funeral cost in the year 2017 – which came up to $8,755.
Life Insurance policies are an essential, and truly help you think long term, erasing your concerns from a canvas already dominated by other stress factors. If you can secure the future of your loved ones – you should do it now! Bolster your safety further, partnering with a top tier life insurance policy and finding the right policy for you – to help secure the futures of your loved ones.