Customer Friendly Life Insurance Coverage


Anyone who has a family would surely want his or her loved ones to be well taken care of should death strike. One of the most logical ways in which to accomplish this is to purchase good life insurance coverage. Carrying such a policy can give you and your family the financial protection you need, along with various, often unexpected, other benefits.

Plan Description

A life insurance plan is a kind of policy that offers financial rewards to beneficiaries after the policyholder dies. It is one of the few kinds of insurance plans where the benefits go to someone other than the policyholder. (Though there are exceptions with certain special plans, such as universal or whole life policies. See below and talk to your insurance expert for more information.)

Who Benefits?

All can benefit from a life plan and these policies are terrific for those who wish to have the peace of mind in knowing that loved ones won’t be left vulnerable should you suddenly pass away. That being said, there are certain types of individuals for whom life insurance policies are quite valuable. Those falling into this category would include single parents and/or wage earners and for those are caring for children (and for an adult in need of special assistance).

How it Functions

The kind of policy you obtain will determine what your life insurance will cover and for kind of set period of time or “term.” Of course, in order to enjoy such benefits, you must make your premium payments consistently and on time. When you die, the policy will then provide the death benefit to your named beneficiary. Some policies also can accrue cash value that you can cash out or acquire a loan; some plans can also offer you the option to access the death benefit while you are still living.

Types of Plans

There are two main kinds of life plans: The first is permanent and the other term. Permanent plans remain functioning for one’s entire lifetime, dependent upon you continuing to pay the premiums. Term policies have a specific length of time in which they stay in effect, such as a 20-year term. Once the term ends, the policy is no longer in effect.

Big Benefits

The main plus in carrying a life policy is the financial compensation provided to your loved ones when you have passed away. Another benefit is that life policy payouts are not subject to income taxation, which means your family will obtain the entire payout.