Life Insurance

Contemplating death can be difficult, but it’s crucial to prepare—especially if you have loved ones relying on you. A life insurance policy can help secure your family’s financial stability, even in your absence. 

What Is Life Insurance? 

Life insurance is a contract between you and an insurance company. While there are numerous forms of life insurance, the general purpose is to provide a lump-sum payment, called a death benefit, to your beneficiaries following your death; however, some policies may provide cash value that can be utilized while the policyholder is living. The financial cushion offered by life insurance can help your loved ones cover expenses like mortgage payments, debts and living costs after you’re gone. 

How Does Life Insurance Work? 

A person purchases a life insurance policy and pays a regular premium. The effective length of the policy will vary depending on the type of life insurance chosen—some forms last a specific term (e.g., 20 years), while others may last a whole lifetime. For example, whole life policies may remain active as long as the policyholder keeps up with premium payments.  

If the insured person dies while the policy is active, the beneficiaries named in the policy can file a claim with the insurance company. The beneficiaries must then submit necessary documents, such as the death certificate, to the insurance company to initiate the claim process. After the claim is processed, the insurance company pays out a death benefit to the beneficiaries in accordance with the policy. 

What Does Life Insurance Cover? 

Life insurance can offer financial assistance in a range of scenarios, including the following: 

• Funeral expenses 
• Outstanding debts 
• Mortgage payments 
• Ongoing living expenses 

Assessing your family’s needs and future financial goals is essential when considering life insurance. Consult a knowledgeable life insurance broker to learn more about your options. 

Get Covered Today 

Your family’s financial well-being is too important to put off. Take the first step by reaching out to Ramos Insurance today.