Life insurance is one of those things people often don’t think about until it’s too late. However, it’s a crucial part of financial planning that can help protect your loved ones from unexpected financial challenges. In your absence, life insurance may support your family in covering expenses like mortgage payments, daily living expenses and college tuition.

What Is Life Insurance?

Life insurance is a contract between you and an insurance company to make available a specific amount of money, called a death benefit, to your designated beneficiaries upon your passing. In exchange, you agree to pay a premium regularly. Different types of life insurance policies offer unique benefits and coverage options.

What Does Life Insurance Cover?

Life insurance may cover the financial impact of losing a primary breadwinner. It can be used to cover immediate expenses, such as the following:

• Funeral costs

• Unpaid medical bills

• Mortgages

• Debts

• Childcare costs

Some policies may also include additional riders for critical illness or accidental death, providing additional financial support.

How Is Life Insurance Paid Out?

When a policyholder dies, the beneficiaries file a claim with the insurance company, submitting necessary documentation like a death certificate. The insurer then reviews the claim. If the claim is approved, beneficiaries can choose from several payout options, including a lump-sum payment, an annuity or a retained asset account, which allows them to access funds as needed.

Get In Touch Today

Explore life insurance options with Slyman Insurance Group. Our team can help you find a policy that fits your family’s needs and budget. Contact us today to get started.