4 Things You Must Know About Life Insurance

​Many people do not talk about life insurance because they associate it with talking about death. But, life insurance is actually a strong foundation for personal finance. Purchasing it is beneficial for your financial planning for the long term. 

Here are x essential things you must should about life insurance to help you understand more about it:

1. The Four Key Players
   In life insurance, there are four players that have important roles in the policy; the insured, the policy owner, the beneficiary, and the insurance carrier. 
   
   The life of a person that is based on the policy is called the insured. The policy owner is the one paying the premium payments to the carrier. In the event of the passing of the insured, the beneficiary receives the death benefit of the life insurance claim. The insurance carrier pays out claims when the insured dies. 
   
   
2. The Two Varieties Of Life Policy
   For this, you need to understand permanent and term life. Permanent life follows a calculus of probability of death, which is 10, 20, and 30 years. It comes with a savings mechanism, also known as cash value, which helps the existence of policy into perpetuity.
   
   Term life is a more affordable and more popular policy. The premium of term policy is based on the same probability of death as a permanent life. 
   
   
3. When You Need To Cancel Life Policy
   When you want to cancel your existing life policy, it is important to know your options. If you think you do not need the term policy anymore, you may stop paying the premium. Before you cash in a permanent policy that you no longer need, assess first the expected future and current investment value, including any potential tax issues.
   
   
4. Why You Need Life Insurance
   If someone is dependent on you financially, then it is a must to have life insurance. If you have kids or you are a spouse, it is your obligation to purchase this policy. Also, life insurance is beneficial if you have dependent parents, you have a life partner, you are an ex-spouse, or you have a sibling who is dependent on you financially. 

Now is the time to evaluate your household needs and find out how much life insurance you should buy. 

At Gary Bacon Insurance, 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 (252) 644-3353 or Click Here to request a free quote.