Life insurance is vital to the financial health of individuals and families in the event of the death of a family member. Understanding how life insurance policies work will help you to choose the best one for your situation.

It’s Never Too Early To Think About Your Future

IS YOUR LIFE INSURANCE POLICY COVERING EVERYTHING IT SHOULD?

With so much uncertainty in life, find peace in knowing your family is covered after you’re gone. Not sure where to begin? That’s alright. With expert guidance from South Carolina Insurance agents at Alpine Agency, you can obtain a life insurance policy that will keep your family financially secure.

SECURE YOUR FAMILY’S FINANCIAL FUTURE

At Alpine Agency, we work side by side with you to determine what policy coverage is best for you and set you up with a plan that will support your loved ones through life. The three most common life Insurance types are:

• Term life – This guarantees payment of death benefits during a specified time.
• Whole Life – This policy carries with you throughout your life, not just a specified time.
• Universal Life – These policies also last the lifetime of the policyholder.

Life Insurance + Final Expense Carriers: AIG, American National, Gerber Life, Legal & General America, Metlife, John Hancock, Protective Life, North American Transamerica, and more.

Understanding Life Insurance

Life insurance is a contract that pays out upon the death of the insured policyholder. The policyholder decides who the insurance company will pay, and this person is named as a beneficiary.

While the policyholder is alive, they pay a premium to keep the life insurance intact. Some policies expire after a certain amount of time, and some last as long as the person continues to pay their premium.

There are many types of life insurance policies, and some are used for investment purposes. Certain life insurance policies can build cash value, which can be borrowed against, and others provide tax benefits similar to a retirement account.

Importance of Life Insurance for Individuals and Families

For individuals and families, life insurance policies can serve different purposes. For individual life insurance in South Carolina, a well-chosen policy will cover your debts and replace your income in the event of your death. For families, these policies can serve as a nest egg for the future generation.

Having a sufficient life insurance policy gives individuals and families peace of mind that they will not suffer financially in the event of an untimely death.

This does not diminish the emotional pain, but it lessens the economic hardship a family can experience when confronted with the loss of a loved one.

Types of Life Insurance Policies

The two primary types of insurance policies are whole life and term life. Whole-life policies last as long as you pay the premiums and generate cash value. Term-life covers a specific timeframe, generally during the time when children are expected to be dependent.

There are many other types of life insurance policies with investment potential. Universal life insurance allows for flexible payments and benefits, while indexed universal life includes cash value accumulation related to the stock market. Variable universal life is essentially a combination of these two options.

Understanding the different types of life insurance policies will help you choose the right one to meet your family’s needs. Your ability to pay premiums, life expectancy, current health, dependents, and financial goals all play a role in your decision.

Commonly Asked Questions About Life Insurance

How much life insurance do you need?

This is a tricky question, as most people would like to leave a substantial amount of money in the event of their death. In reality, the amount of insurance you need depends on the amount you can afford, how many dependents you have, and your current age.

Your insurance agent will help you evaluate your current situation and find a life insurance policy that meets or exceeds your needs.

How many life insurance policies can you have?

You can have multiple life insurance policies. One common situation where people will have more than one policy is when an employer offers a policy, but you purchase an additional one to meet your family’s needs.

Will I have to pay taxes on my life insurance?

Generally speaking, life insurance policies are not subjected to income tax. However, you may have to pay taxes on any funds withdrawn from the policy. Your beneficiaries may not have to pay taxes on life insurance payouts, but they will have to pay taxes on the interest.