• Parents who have children that they care for
• Business partners who have an integral role in their corporation
• Loss of Use Coverage
• Vacant Property Coverage
Few things are more certain in life than the ending, and that ending is something that everyone should be prepared for. One way Vermont residents may want to prepare for their passing is by getting life insurance.
In its most simple form, life insurance normally pays out death benefits upon the policyholder’s covered passing. Some policies also have investment components that can be used to save for retirement or other goals.
Death benefits generally are the payments made when the policyholder passes away in a covered claim. They’re often mentioned when referring to a policy. For example, a “million dollar life policy” would likely offer $1 million in death benefits.
Usually, there are few restrictions on how death benefits are used by the recipients whom they’re paid to. People commonly use them to help with living expenses, pay off debt, save up for a major purpose or cover end-of-life expenses, but they also can be put towards other purposes.
Named beneficiaries are normally the people or organizations who receive a life policy’s death benefits if they’re paid. The term reflects that the people are typically listed, or named, in the policy’s paperwork and benefit from the financial payments if they’re made.
There are often also few restrictions on whom a policyholder can list as named beneficiaries. Many people choose their spouse, children and grandchildren, but trusts, businesses, nonprofits and other organizations can also be listed. Policyholders can frequently also list non-related individuals.
Term life policies are designed to offer coverage for a specific term, and they tend to have stable premiums throughout that term. Death benefits are generally provided during the term, and the policyholder normally doesn’t have to pay premiums after the term is over.
People who get term life policies often appreciate the stable premiums, and they frequently use the policies to provide coverage for only a certain stage of life. For example, a breadwinner might purchase a term life policy for 20 years while they’re raising children. When the policy expires, their children should be grown adults and retirement savings hopefully will be able to support their spouse.
In contrast to term life policies, whole life policies are intended to last the policyholder’s entire life. Premiums tend to escalate as the policyholder grows older and risk of death increases, but the policies usually also have a retirement savings option that can also grow. In policyholder’s senior years, the interest generated from the policy’s savings program may be greater than the premiums and cover those payments.
People who opt for whole life policies may want coverage for their entire life, or they might like the savings options included with the policy. This is widely used by people who are concerned about retirement, and it’s an especially popular option with those who need to make sure a loved one will be financially cared for after their passing.
Anyone who’s passing would cause a financial strain on others might want to consider getting a life policy. This includes (but isn’t limited to) the following:
Additionally, those who want to leave a legacy may also get a policy. For instance, grandparents might consider getting a policy to make sure their grandchildren can go to college. Alternatively, Vermont residents who want to leave a substantial gift for a charity could purchase a policy.
To find a life policy that’s right for your particular situation, contact the team at Paige & Campbell Insurance. Our independent agents know both term and whole life policies, and they have the expertise necessary to help you find the right type of life insurance policy and coverages. They’ve worked with many Vermont residents, and they’re ready to assist you.