6 Important Things About Life Insurance You Need to Know

​Whole life insurance is considered one of the most important policies in every household; some people are still confused or skeptical about it.
 
The following are six explanations about life insurance to help you understand it better:

​1. There Are Four Main Casts The insurance company, the policyholder, the insured, and the beneficiary. You are the insured and the policy owner.
 
2. The Two Main Life Insurance Categories

• Term Life - It is widely available and the most affordable. The insurer usually determines the premium of term life policy by estimating the death of the insured, which is 10, to 20, or up to 30 years. After the specified term, you decide to continue paying the premium or to drop it.
• Permanent Life - It uses the same principle in estimating the time of death, but it comes with a savings mechanism or also called cash value. It may be more expensive than term life, but it can help with some financial dilemmas.

 
3. Life Insurance Policy Acts As A Contract Between The Policyholder Or A Trust, And The Insurance Company. The company gives a payout to the beneficiary when the insured dies, which is commonly known as a death benefit.
 
4. Life Insurance Helps Compensate For The Financial Burdens When Death Occurs. It assists the loved ones that are left behind regarding paying mortgages, lost income, planned costs of education, final expense, and outstanding debts. Therefore, life insurance is highly recommended to a single-income household and a stay-at-home parent.
 
5. You Get Life Insurance If Another Person Financially Depends On You. You may think that life policy is only ideal for parents or spouses, but it goes way more than that. It is also appropriate for anyone who has dependent parents, an employer, an employee, a business partner, a sibling with dependents, life partner, or ex-spouse.
 
If you think that someone would be financially affected in the event of your death, then buy life insurance.
 
6. Secure Your Options First Before Dropping Your Existing Life Insurance Policy. If your current policy is no longer appropriate for you, assess things first. Consider asking your agent about cost basis report and in-force illustration.
 
Make sure you include life insurance in your financial plan. Contact a life insurance agent to explain how much should you pay for your policy and other important pieces of information. At Insurance Services of the West, LLC, we aim to provide comprehensive insurance policies that makes your life easier. You can get more information about our products and services by calling our agency at (425) 681-0996. Get your free quote today by CLICKING HERE.