18 Jun 2020
Your Ultimate Guide to Understanding Life Insurance

Life insurance provides financial protection for your beneficiaries in the event of your death. The insurance can cover your parents, spouse, or even a nonprofit organization. However, before buying insurance, you need to know what expenses your policy can cover. This will help you make an informed decision.

Daily Bills

Your life insurance policy can cover your household costs, including house rent, food, clothing, utilities, kids’ tuition fees, and other day-to-day bills. Also, the coverage often extends to other forms of insurance that the beneficiary has to pay, including health and car insurance.

Medical Expenses

Often, life insurance policies allow beneficiaries to access a portion of the benefits for paying medical expenses. If you are diagnosed with a severe illness, it will typically require long-term care, and having a life insurance policy would help in such situations.

Dependent Expenses

Kids are one of the primary reasons why people pay for life insurance. Being insured ensures that your kids’ expenses, including daycare costs to college expenses, are covered.

Mortgage

A house is the most significant asset for most people. After your death, your spouse or family may suffer financially, as your income is lost. However, life insurance can help your partner to pay the mortgage.

Cosigned Debts

A cosigner on a loan agreement is one who agrees to pay the debt if the borrower defaults. If you have cosigned loans, the cosigner has to pay the debt after your death. However, having a life insurance policy can allow them to pay off such debts, thus significantly reducing their burden in a difficult time.

End-of-Life Expenses

A life insurance policy covers end-of-life costs ranging from funeral costs to burial expenses. This can help your family, spouse, and friends to manage such expenses.

These facts would help you make a more informed decision when opting for a life insurance policy. Do you need help getting the right insurance coverage? Contact the experts at Patterson & Associates today. We are ready to assist you with all your insurance needs and questions.