THURSDAY, APRIL 14, 2022
Life insurance provides financial protection after death. In some cases, it can cover a variety of things, or it can be a basic payment the individual can use as he or she likes. There are a few things to know, especially about the difference between term and whole life policies. Here’s where to start.
Life Insurance Overview
Life insurance is a very basic policy in terms of how it works. Specifically, it provides a payment in the amount you choose to the person you name. You can encourage the individual you name to use the funds in any way they would like. Or, you can establish a trust. This is a legal document that gives you more control over the eventual use of the life insurance payment.
The good thing is that you or the beneficiary can choose to use the insurance in almost any way desired. There are no rules limiting you here. It also never has to apply to medical bills or debts if you don’t want it to.
Most Common Uses for Life Insurance
A basic term life insurance policy is very flexible. The beneficiary can use the funds in various ways, including the following:
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They can use the funds just to meet day-to-day cost of living needs. This may help them pay their mortgage, utilities, and other costs.
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The beneficiary can use the funds to pay off specific debts. A mortgage is a common one. This can make it possible for the individual to continue to benefit from those assets without worrying about the costs.
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The funds can help keep a business running.
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The beneficiary can use the funds to fund retirement goals.
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The funds can pay for a grandchild’s college education.
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Name a charity or a trust on your policy. The funds can then go to a wide range of resources.
A whole life policy adds a few additional benefits. This policy allows the policyholder to borrow from it from time to time during their lifetime. It can also pay some dividends during their retirement years. This can supplement retirement income.
Work closely with your insurance agent at Franklin Insurance Agency Inc. This gives you the most opportunity to choose a policy fitting to your needs. Life insurance can cover a variety of benefits based on your goals and the type of policy you choose.
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It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional
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