October 7, 2008
What exactly is life insurance and how does it work?
Eruvadhron “LOE” asked:
What exactly is life insurance and how does it work?
What exactly is life insurance and how does it work?
I don’t understand, won’t you be dead or something so what does it do for you?
What happens if it doesn’t get cashed in, what does that mean?
Sorry I don’t understand, please explain.
Filed under Insurance by admin
Comments on What exactly is life insurance and how does it work? »
Life insurance isn’t bought for you. It’s bought by you to give money to your heirs.
If you are single, it can be used to pay off your debts and bury you. If you are married or have children, any extra money can be used by them to replace your paycheck.
Many companies offer insurance for all employees, so even if you are single with no debts, you may have $25K to $50K of coverage through work.
Its not to benefit you - its to benefit your survivors. Go to Yahoo Finance, click on “Personal Finance” and read the life insurance section.
Life insurance helps to supplement the income for your family after you die. If you are married and both you and you spouse work and you pass now she is down to a single income. will your family be forced to move? will your kids be able to go to the same schools? If you are single life policy will not only help to pay your funeral costs which can exceeded $10,000 you can cash out on that life policy when you feel you do not need it any more. You take the money out as a loan against the policy which can be done tax free. however that will eliminate the death benefit. Talk to your agent for further info or send me an email if you have further questions.