Can Life Insurance Help Your Family with Immediate Expenses?
Life insurance is an important tool for most families. If you have loved ones who depend on your income, or you have debts that you do not want to leave behind, it is very important to consider this type of financial protection.
Life insurance is there to help those left behind when you pass on. Without it, your family might have to try to continue living their quality of life without having your income. Could they do so comfortably?
One of the key benefits of life insurance is how it is paid back to you.
There are very specific laws that outline when and for what life insurance can be used. If you obtain a policy today, you will list the person’s name you wish to receive the benefit.
The benefit is the amount of money that the policy is for. That benefit is paid out to the beneficiary you’ve listed. If something were to happen to you, the individual simply needs to contact the life insurance provider to file the claim.
The claim or benefit is then paid to the individual. He or she can choose how to use these funds based on your wishes or their needs. Generally, you have limited control over how the funds are used unless the life insurance is placed in a trust.
Here are a few more things to know about this type of financial protection:
It is not possible for creditors or others making claims against your estate to access or touch these funds. They do not have to be used to repay debts at all. It is up to your loved ones to decide how these funds are spent based on who is named on the policy.
The funds do not go through probate court. your other assets may. Probate takes at least a year to and it is complex.
There’s usually little delay in obtaining these funds. After your death, the claim is made. Usually within a few weeks, the individual beneficiary will have funds on hand to meet their needs.
For these reasons, it can very valuable for individuals to purchase life insurance. From paying final expenses to simply covering the costs of day-to-day life, these policies provide powerful financial stability.
You can learn more about life insurance on our web site. Do you have questions about your life insurance beneficiaries? Call us today at 773-804-9000.