6 things to know about life insurance
Watson Insurance Agency offers life insurance in Rock Hill, SC, Charlotte, Columbia, SC, Shelby, NC, Gastonia, Belmont, NC and surrounding regions.
Life insurance is a financial product that can provide security and support to your loved ones in the event of your death. Here are six important things to know about life insurance: 
- Purpose of Life Insurance: Life insurance is designed to provide a financial safety net for your beneficiaries, typically your family, in case you pass away. It can help cover expenses like funeral costs, outstanding debts, and provide income replacement for your dependents.
- Types of Life Insurance: There are several types of life insurance policies, but the most common ones are:
- Term Life Insurance: Provides Coverage for a specified term (e.g., 10, 20, or 30 years). It pays out a death benefit if you die during the term.
- Whole Life Insurance: Offers lifelong Coverage and includes a savings or investment component, allowing the policy to accumulate cash value over time.
- Universal Life Insurance: Combines lifelong Coverage with flexibility in premium payments and death benefit amounts.
3.Premiums: To maintain a life insurance policy, you must pay regular premiums. The amount you pay can vary based on factors such as your age, health, Coverage amount, and the type of policy. Generally, term life insurance has lower premiums than whole or universal life insurance.
4.Underwriting: When you apply for life insurance, the insurer assesses your risk by considering factors like your age, health, lifestyle, and occupation. Your premium will be influenced by the results of this underwriting process. It’s important to be honest during this process to ensure your beneficiaries receive the full benefit.
5.Beneficiary Designation: You’ll need to designate one or more beneficiaries who will receive the death benefit when you pass away. You can name individuals, such as family members or friends, or entities like trusts or charities. Keep your beneficiary designations up to date to reflect changes in your life.
6.Policy Riders: Some life insurance policies offer optional riders that can enhance your Coverage. Common riders include:
It’s essential to carefully evaluate your financial situation, goals, and the needs of your loved ones when considering life insurance. Work with a reputable insurance agent or financial advisor to determine the right type and amount of Coverage for your specific circumstances. Additionally, reviewing your life insurance policy periodically is essential to ensure it remains suitable as your life situation changes. Please call us without hesitation.
