What is Life Insurance?
Life Insurance is coverage purchased by an individual to protect his/her family in the event of death. While the standard Florida Life Insurance policy provides only death benefits, certain types of life insurance policies also provide living benefits.
What does Life Insurance cover?
Florida Term Life Insurance primarily provides coverage upon the death of the insured. Benefit amounts vary, and should be determined based upon various factors relating to the insured’s financial position. Some more inclusive Florida Life Insurance policies (known as permanent insurance or whole life) also provide living benefits such as retirement disbursements.
What are the additional coverage options?
- Waiver of Premium – Company will pay the Life Insurance premium in the event that the insured becomes disabled.
- Cash Values – Certain permanent Life Insurance policies provide a cash value benefit, which allows for retirement benefits. The cash value is also available for loan in the event of a financial emergency.
Who should purchase Life Insurance?
Life Insurance has broad applications. The following are some of the more common scenarios where Life Insurance is purchased:
- You are recently married
- You have a newly born child
- You recently purchased a new home
- You are seeking to save for retirement
- You have amassed a sizable estate.
Is Life Insurance Mandatory?
While Life Insurance is not mandated by any law, there are some situations where this coverage is required. Common examples include a business owner taking a bank loan or a couple involved in a divorce.
Is Life Insurance very costly?
Life insurance cost is dependent on a number of factors, such as type of policy, amount of death benefit, age of insured, and health of insured. As the options for this coverage are numerous, it is advisable that the consumer consult with a professional life insurance agent prior to deciding on this important purchase.