Financial security is essential, especially in times of emergency and unexpected passing. Consequently, ensuring those who would be left behind are financially secured is also crucial.
What You Need To Know About Life Insurance
Not many people know the basics of life insurance. In turn, most are hesitant to acquire one. Although not everyone needs a life insurance policy, its benefits will be more than helpful.
Types of Life Insurance
Generally, life insurance policies are categorized into two: permanent and term life. The main difference between the two is the duration of the policy.
Term life policies are good for a certain period of time. Additionally, this type of policy provides the insured’s dependents a cash component called a death benefit. On the other hand, permanent life policies offer an investment component for cash value accumulation.
However, insurance agencies offer other insurance policies not limited to permanent and term life.
The Benefits of Life Insurance
Different insurance agencies offer various policies depending on your needs and budget. Consequently, those interested to get a policy can get theirs tailored to their specific needs. Aside from the dependent’s financial security, there are other benefits the insured can reap from acquiring life insurance.
Some Life Insurance Benefits
- Most policies can be kept for as long as 120 years old. One benefit of permanent life insurance is it allows for lasting coverage.
- The insured can borrow against the cash value. If the insured needs money to pay for something, they can use the accumulated premiums.
- Some policies offer accelerated benefits. Insurance agencies offer up to 100% of the policyholders’ death benefit if they contract diseases like invasive cancer or heart attack.
- Policyholders can acquire tax-deferred growth, which means that they don’t pay taxes on their policy’s components.
- Life insurance policies provide the insured’s dependents financial security.
- Insurance policies can be considered an investment for the insured.
Although not everyone needs a life insurance policy, having a financial safety net is beneficial. Knowing that your loved ones will be financially secure after your passing is peace in itself.
At Old Bay Insurance Agency, Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (410) 777-5390 or Click Here to request a free quote.