Life insurance typically is purchased to protect the policyholder’s immediate relatives from financial difficulty when this individual dies. The insurance can be an amount intended to pay for funeral expenses. In contrast, it can be a much larger amount that helps the family live without hardship if they lose an income earner. A life insurance agent in Oceanside can explain differences among various types of policies.
The Policyholder’s Access to the Money
People interested in this insurance may have heard about options to use it while they are still alive. A life insurance agent in Oceanside is happy to explain how this works. A rider may be added that allows policyholders to withdraw from the balance. Borrowing against the policy is another option. A rider also could allow the insurance to pay for long-term care.
These options apply to whole life insurance but not to term life policies. Term life is a lower-cost type of policy that is worth the face value as long as the policyholder pays premiums on time. It does not accumulate savings or increase in worth. In this way, term life is similar to automotive insurance. The policy does not have any value after the term is over unless the customer renews it.
Other Reasons for the Purchase
Some men and women buy life insurance for other reasons. For instance, they might want to leave money to a charitable organization. They can name this organization as the beneficiary of the policy. Agents from Serra Benefits & Insurance Services are available to answSSer questions that consumers have about life insurance.
