Life Insurance

If you ask most people what life insurance is, they will most likely tell you that this is a policy you purchase and pays money to your family upon your death. However, when you ask them to explain the some of a policies main features, the various policies available, or how they work, they'll most likely request you change the topic.

However, life insurance should be an essential part of a person's financial strategy. This is because life insurance can ensure your loved ones or family's financial future is secure upon your death. Besides helping you cover your final expenses, life insurance also acts as a safety net for your family through replacing your income or serving as an inheritance to your family or loved ones.  New types of life insurance can even provide benefits to you and your family should you suffer a critical or chronic illness.  

What is life Insurance?

It is an agreement between you (the policyholder) and an insurance company. Every life insurance policy is different from the other, and each state's regulations or laws governing life insurance policies are different. However, most life insurance policies identify the policyholder, the insurer, the insured, policy length, beneficiaries, death benefit, premiums, and cash values.

Why Purchase a Life Insurance Policy?


Protect against Unforeseen Events

A life insurance policy provides the holder with protection, keeping them and their families financially solvent in the case of an unfortunate event.

Return on Investments

Cash Value Life insurance policies can provide a savings opportunity that creates the potential for income from the policy in the future, in addition to the death benefit protection.  

Loan Options

A Life Insurance policy offers the advantage of taking a policy loan if you need cash. The loan amount can be taken as a cash value percentage depending on the policy's provisions.

Death benefit

Your family gets a financially secure future by investing in a life insurance policy. If the insured dies, the insurer pays the entire amount; less policy loans to the bereaved family. The policy can also protect people having diminished incomes because of advancing age, retired people, or those who encounter accidents.

Life Stage Planning

A life insurance policy helps its holder in life stage planning, where they can plan their life's financial goals to their convenience. Besides offering support financially in an untimely demise, life insurance can also build long-term cash. You may meet your goals like educating your children, financing their marriage, planning a retirement life, building your dream home or other desires.  

Frequently Asked Questions

There are two primary or common types of life insurance; term life insurance and permanent life insurance. Term Life Insurance: This policy offers coverage for a specified duration, generally between 10-30 years. Term life insurance is at times called "pure life insurance" since, unlike a permanent policy, it doesn't include a cash value component. Nothing is left upon the expiration of the term. Permanent Life Insurance: This policy provides coverage that lasts for the entirety of your life. Contrary to term life insurance, it isn't "pure life insurance" as it includes the cash value component, helping make the policy last. At the same time, the premiums are paid, and the insured is alive while offering other financial benefits. The insurer invests some of your premiums, and your cash value grows tax-deferred as time passes. However, in most cases, the full death benefit is payable immediately from the first day of acquiring the policy.

A life insurance policy is a contractual agreement between the policyholder and any life insurance company that pays out the death benefits after the insured's demise. The policyholder pays premiums to the insurer for the specified duration indicated in the policy. Upon the demise of the insured person, the insurance company is notified. After conducting its investigations, the company then pays the total sum insured to the beneficiary.

Yes, they do. Life insurance pays out the total sum insured as death benefits to the listed beneficiaries for most death causes. Suicide (mainly after two years), illnesses, most accidents, death from natural causes are covered by a life insurance policy.

This depends on the life insurance company, but most term life insurance policies are 10, 20, and 30 years. However, most life insurance companies offer additional 5 or 10-year increments. Your insurance policy's term length can cover your outstanding debts and financial obligations.

Client Centered

As you might have noted, having a life insurance policy is necessary. It is a protection and risk minimization tool that you should purchase without any choice or thought. However, you don't need to undergo stress looking for a good insurer. Bespoke Retirement Advisors can help. Call us today to learn all about life insurance and the options available to choose from.

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