Activity

Life insurance provides peace of mind and can play an integral part of estate planning strategies.

Life insurance is a contract between you and an insurer (also called an assurer). You pay either regular premiums or one lump sum payment and, in exchange, they promise to pay out benefits upon death or after a specific period. Usually the benefits go to policy owners’ families; however other beneficiaries can be designated. Individual policies can be purchased through brokerage firms and banks as well as employers or groups.

everdaylifeinsurance.com of life insurance depends on where you are in life and whom depends on it for financial support. If you have young children relying on you financially, adequate coverage should cover income replacement for as long as they live as well as funeral costs and bereavement services. Once children have grown and you own a home free and clear, reassess coverage needs accordingly in order to cover final expenses, outstanding debt and leave behind an enduring legacy for future generations.

Reexamining beneficiary selections regularly is crucial. Events like marriage, divorce and birth can affect who should benefit. You should also consider designating a trust as a beneficiary to ensure your estate is handled as per your wishes – this can be accomplished by including a revocable living trust into your overall financial plan.

Your family can claim on your life insurance policy after your death by providing all necessary documents – including certified copies of the death certificate – to the insurer. Often this process is relatively quick and simple and can usually be completed within a week, provided they receive all relevant paperwork from their policy.

An integral factor in setting life insurance rates is the mortality table. This calculation takes into account factors like average lifespan for people of your age and gender in a given year as well as any personal health conditions assessed through underwriting (an application process that includes medical exams and answering lifestyle-related questions).

Life insurance companies are contractually required to pay only those beneficiaries listed in your policy, so it’s crucial that their names and contact information is up-to-date. If you want to change one, notify the insurer and submit a Change of Beneficiary form; note that changing only in your will won’t have any bearing on changing it on the policy itself.