Life Insurance

 

What Is Life Insurance and How Does It Work? 

Life insurance can help ease some of the worry surrounding your financial stability when you die. This coverage can ensure your loved ones that they will be financially taken care of when you pass away. 

Reynolds Insurance Services can help you learn more about your life insurance options and help you find a suitable policy for your needs.  

How Does Life Insurance Work?  

Typically, an insurance agent works with you to determine your life insurance needs. Sometimes, a third-party administrator is contracted by your insurer to conduct an exam on you. After your exam, you’ll be given your rates, and then you can choose a policy. Your premium cost will depend on the policy you choose, your risk and your health. Although policy terms can vary, benefits are typically paid out upon death. This money, known as a death benefit, is then given to the named beneficiary or beneficiaries, who can use the money as they see fit.  

What Types of Life Insurance Can I Have? 

There are two primary types of life insurance to choose from:  

Term life insurance provides money to your beneficiary if you die during the policy’s term. This term may be a period of 10, 20, 30 or more years, depending on the expiration date of your policy. If you don’t die during this time, the policy doesn’t pay. You would have to reapply for a new policy to continue coverage.  

Whole life insurance lasts for the remainder of your life once you’ve enrolled. The policy won’t expire unless you stop paying it. This plan also offers a cash value investment opportunity, and the cash value component can provide a source of income. At the same time, you are still alive (in addition to the eventual death benefit).  

Reynolds Insurance Services can help you further explore other forms of life insurance, which may include: 

How Much Life Insurance Do I Need?  

Life insurance and how much you choose to have is a personal decision. Some people associate the value of their life insurance policy with the value of their debts, such as mortgages or car payments. If you die while these debts are outstanding, your beneficiary may use the money to settle these expenses.  

Other people choose to correlate their benefit to their income and leave a certain number of years’ worth of their paycheck to their survivors. What you decide to do is entirely up to you.  

What Does Life Insurance Cost?  

The cost of life insurance varies from person to person. Factors such as age, income and coverage can impact your premium. We can help you review policy options and potential costs.  

How We Can Help 

Unexpected events happen. We help California clients create life insurance policies that meet their individual needs, and we can also help you with your wants. Call Reynolds Insurance Services today at 559-846-7389 to get started.