How can you best set up your family for their lives should you pass away?  This is a question that gets asked more than you would think.  You can save money over time in a nest egg account and pass that account on to your family, that’s certainly one way to do it.  Another way is to set up a life insurance policy that will cover you in the case of your passing.  We will cover facets of life insurance and what to look out for below.  Associated Insurance Agencies Inc. in Westerville, OH offers life insurance and other insurance needs.

How Life Insurance Works

Life Insurance works similarly to other forms of insurance in terms of how they work.  In general terms, you pay a monthly premium to your insurance agent for the policy, and the policy pays out in a coverable event.  The coverable event, in this case, would be your passing which is quite different from a fender-bender for car insurance.  This is why life insurance is a subject that’s not talked about very much due to the macabre nature of what the end result would be.  It’s beneficial not to think of life insurance in those terms as this has more to do with what you leave behind versus the fact that you’re leaving in the first place.

Term Life & Whole Life

There are two types of life insurance that you can get, term life insurance and whole life insurance.  Term life insurance covers a term or length of time which can run up to 20 or 30 years.  Monthly premiums are lower for term life insurance, but the premiums paid don’t add value to the policy.  Whole life insurance covers your entire life and premiums are paid in perpetuity until your passing.  The bonus about whole life insurance is that your premiums build more value in the policy.

To Learn More

You can get more information about life insurance by contacting Associated Insurance Agencies Inc. in Westerville, OH today!