Bayshield Insurance serving San Jose, CA would like to talk to you about some of the common life insurance questions you may have.
What is Life Insurance?
It is an insurance policy that you take out and pay a monthly premium for. In the event of your death, money is paid out to your beneficiaries to take care of them after you are gone. It affords your loved ones additional financial protection or may be used to pay off a mortgage after your death.
How many types of Life Insurance Policies are there?
There are two main types – term life and whole life. Term life insurance is when you take out a life insurance policy for a particular time frame. If you die during that period, then your death benefit is paid out. If you do not, then you may renew it depending on the policy wording. A whole life insurance policy is a policy that you pay for from the time you take it out until the time that you pass away. The death benefit is paid to your beneficiaries
What is a Beneficiary?
A beneficiary is a person or persons that you have nominated to receive the benefit (or money) from the life insurance policy after your death.
Are Life Insurance Policies expensive?
This depends on several factors including, the amount you wish to insure, your health, the type of life insurance policy you want, and your age. Term life insurance policies are more cost-effective in the beginning but eventually get more expensive. Whole life insurance policies are more expensive in the beginning and flatten out as you age.
There are many benefits to purchasing a life insurance policy. Contact Bayshield Insurance serving San Jose, CA today and let them guide you.