An Introduction to Life Insurance: What You Need to Know

An Introduction to Life Insurance: What You Need to KnowLife insurance can be a confusing policy to navigate, so it is of the utmost importance that you know what you are getting yourself into. 

A life insurance policy is a contract between you and your insurance company that states they, your insurance company, will provide your beneficiaries with a certain sum of money in the event of your death. In return for this death benefit sum, you make periodic payments, usually monthly, called premiums. Life insurance is meant to replace your annual income for years after your death, as to make finances one last thing your family has to worry about apres your death. Types of Life Insurance  When it comes to life insurance policies, there are really only two you have to worry yourself with, term life insurance and whole life insurance. TERM LIFE INSURANCE  Term life insurance offers protection for your loved ones for only a specified amount of time–a term. It usually ranges from anywhere between one and thirty years, with the average policy lasting 20-25 years. It is the cheaper option, and thus more popular, but does not build cash value. WHOLE LIFE INSURANCE Whole life insurance lasts your whole life and is intended to protect your loved one permanently, so long as you pay the required premiums. While a bit more expensive, this policy accrues cash value that can be used later in life should you decide that paying the premiums after your children reach complete independence is not what you want to do. How Much Life Insurance Do You Need? In order to be covered fully you have to think of a few important expenses which you make on a monthly basis: mortgage payment, student loans, credit card debt, car payments, children costs, future tuition, and more. When it comes to something as important as life insurance, you want to make sure you know what you're doing. Contact your Mercury insurance professionals at Carver Insurance Services, Inc. for all of your insurance needs in Murrieta, surrounding areas, and California.

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