Life Insurance in Chicago, IL
The right life insurance policy can help provide financial stability to your loved ones if you pass away unexpectedly. But you may also be able to benefit from it while you’re alive. Read on to learn more about the types of life insurance coverage and how you can utilize your policy to build cash wealth while you’re still living.
How Does Life Insurance Work?
Your life insurance policy is a binding agreement between you and your insurer. If you pass away while your policy is active, your insurer agrees to provide a lump sum, known as a death benefit, to your chosen beneficiaries. Death benefits may be used to pay for funeral expenses, burial costs, estate taxes and other costs associated with your death, per your policy terms.
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Types of Life Insurance
When it comes to choosing a life insurance policy, there is no right or wrong answer. The best type of life insurance policy is the one that meets your needs.
When selecting your policy, there are two primary types of life insurance coverage that you may be able to choose:
- Term life insurance coverage is typically less expensive. This policy provides coverage for a predetermined amount of time, such as 10 or 20 years. At the end of that term, your beneficiaries will no longer receive a death benefit when you pass away.
- Permanent life insurance coverage can provide lifelong protection. These policies typically have a level premium, meaning your rates are locked at the price you purchase your policy. They won’t increase even when you’re older and need more coverage. Policies may vary among insurers, but you may also be able to withdraw or borrow money from your permanent life insurance policy to gain wealth.
These policies are also be known as the following:
- Whole life insurance policies
- Universal life insurance policies
Utilizing Life Insurance While Alive
Depending on your insurer and the life insurance policy that you may have, there may be instances in which you can access the funds of your life insurance policy while you’re still alive. For example, if you have a permanent life insurance policy, your policy may accrue cash value, which may be able to be withdrawn or borrowed against as a loan. Or, you may be able to sell your permanent or term life insurance policy or surrender it for a cash value. Every policy is different, and tax implications or penalties for doing this may exist. Please discuss your options for using your life insurance policy while you’re still alive.
How to Get Life Insurance
We have over 50 years of experience helping people find the best insurance policies for their needs. Contact Salvador Insurance in Chicago, Illinois, to get a customized insurance quote.