Before discussing the benefits of life insurance, we should start by explaining one important thing.
What is life insurance, exactly?
Life insurance is an agreement between the insurer and a policyholder. The agreement states that the insurer will pay an agreed-upon amount to a beneficiary in the event of the policyholder's death. This assumes that the policyholder has paid all premiums.
In the event of the policyholder’s death, the beneficiary would receive the life insurance policy’s face value or death payout.
Two of the most popular life insurance policies are term and life policies.
Term policies cover the duration of the “term”. This is often 5, 10, 15, or 20 years.
In the event of death, this policy would pay out to the policyholder during this term.
Whole Life insurance policies, sometimes called Permanent Life Insurance, are different from term policies in two main ways.
One, it never expires.
Two, it provides cash value in addition to the death benefit.
To understand which type of policy is best for you, we recommend contacting one of our expert life insurance agents!
At its core, life insurance protects your spouse and your children from the financial losses that could result in the event of your death.
It can provide financial security and helps pay off debts and living expenses. It also helps pay for any medical or final expenses.
Life insurance payouts are also not subject to federal income taxes, meaning that a $500,000 policy provides $500,000 in death benefit. This goes directly to your beneficiary.
And don’t forget funeral expenses. Whether you have a family or are single, life insurance provides the means to address costly funeral expenses.
Life insurance needs can change over time, depending on your life situation at a given moment. Making sure that your policy can adapt with you is an important aspect of choosing the right coverage.
To request a quote for life insurance in the Maryland area, or to get a review of your current insurance, contact RG Insurance today. We are among the premier independent insurance agencies in Maryland! We work with multiple companies to make sure your policy is tailored to you, with no coverage gaps or overpaying.
We have served the Maryland community for over 20 years, and we would love to help you with your life insurance needs!
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