Thinking about premature death is something that many people may label as morbid and as a topic that they would rather not think about, let alone discuss. But as your preferred Lancaster, Pa. credit union, it’s our duty to prepare you for the unexpected and to get you to think about protecting your and your dependents’ financial future.
What Is Life Insurance?
Life insurance is a contract between the insured (you) and the insurer (typically an insurance agency), where the insurer promises to pay a designated beneficiary (or beneficiaries) a sum of money in exchange for a premium, upon the death of the insured person.
According to U.S. News, “30% of U.S. households do not have life insurance policies.” Whether the reasons for this are the cost, the lack of knowledge, or simply negligence, we’re here to describe three reasons why you need to invest in life insurance.
1. The Ability To Provide For Your Dependents
This is one of the best benefits of a having a life insurance policy in place. When you invest in life insurance, you’re able to ensure that your dependents will be able to maintain a certain lifestyle in the unfortunate circumstance of premature death. For example, the insured person could verify that their children would be able to attend college; a monetary donation could be set up for a cause that is near and dear, or the money would be used to cover final and estate expenses.
2. You Have Options When You Invest In Life Insurance
There are two types of life insurance policies available: Term Policies and Whole Life Policies.
Term Policies can be set for a specific range of time (e.g. 10, 20, 25, 30 years). This type of policy coverage is often more affordable for the insured and is a great way to support loved ones through a certain stage of life. However, these types of premiums only pay proceeds if the insured dies during the term of the policy.
Whole Life Policies offer coverage throughout your entire life. These policies can be a bit more expensive, and hold higher monthly premiums that never change. Although, the insured can borrow against the cash value and use the money for any needs that may arise.
3. Sell Your Life Insurance Policy In Times of Need
As we just mentioned, unexpected expenses and bills accrue throughout an illness. Terminal patients can cash in their policy, at a discounted rate, to cover medical costs and other impending expenses. Even though the beneficiaries on your policy will not receive a sum after death, this may be a better option than leaving them to resolve outstanding debts.
Lancaster Red Rose Credit Union works with TruStage Life Insurance Company to exclusively offer credit union members the protection you need in case of the unknown. These plans are designed to fit your budget and provide excellent coverage. Call 1-855-612-7909 to speak to a representative.