Life Insurance

Term life insurance is a temporary form of life insurance that stays in effect for a set term, typically terminating after 10 to 30 years. Upon the death of the insured, the death benefit is paid to the stated beneficiary.

Whole life insurance is a permanent form of life insurance that stays in effect for the lifetime of the insured, provided premiums are paid. Upon the death of the insured, the death benefit is paid to the stated beneficiary.

Life insurance benefits paid to stated beneficiaries is not taxable.

Life insurance helps people prepare for the end of their lives, offering people a way to provide for loved ones they leave behind. Because death is one of the few sure things in life, this is a form of insurance that most people should at least consider getting. At the heart of life coverage is what’s known as “death benefits.” These benefits are normally distributed upon a policyholder’s passing, according to their wishes. In most cases, recipients can use these benefits for almost any legal purpose. Frequently, they’re used to: Ensure dependents are able to maintain their quality of life; Fund college for loved ones; cover outstanding bills or debts that the policyholder had; pay the policyholder’s wake and funeral expenses; and assist with any other financial struggles beneficiaries face. Some life coverage also includes investment options, which may be used to help fund a policyholder’s retirement. Not all life policies have such options, though.

Most life policies fall into one of two categories. They’re either term life policies or whole life policies. While both types of policies provide death benefits, their structures are significantly different. Term life policies are structured to provide coverage for a set number of years, or a term. Most terms are between 10 and 30 years. During a policy’s term, the policyholder must pay premiums in order to receive coverage. After a policy’s term, coverage ceases -- but so do premiums. In general, term premiums are fairly low and remain low throughout the duration of a policy’s term. Whole life policies are normally designed to provide life coverage for the remainder of a policyholder’s life, however long that may be. They generally don’t have a date on which benefits expire.

How homes are valued for high value homeowners policies differs slightly from insurer to insurer. It’s not uncommon, however, for insurers to send an appraiser to a home to value the home and its contents. An in-person appraisal is often the best way to get accurately determine how much a home and the items inside it are worth.