Life Insurance in Ringoes, New Jersey
Serving the entire Tri-state area
After losing a loved one, family members may face difficult times. The emotional and mental hardship of the mourning process can take a toll on loved ones, and related financial burdens may exacerbate the stress and difficulty of these circumstances. With that in mind, it’s essential to understand the benefits of an adequate life insurance policy.
What Is Life Insurance?
Life insurance provides a critical financial safety net for an insured person’s loved ones. Following a person’s death, these policies can provide invaluable financial assistance to help family members manage losses and expenses directly and indirectly related to their loved one’s passing. Without sufficient coverage, families may be left with significant out-of-pocket costs or without the means to provide for themselves.
How Does Life Insurance Work?
While the general purpose of life insurance is to provide financial resources for a person’s beneficiaries, the details, capabilities and limitations of policies may vary quite a bit. Although there are many types of life insurance, most policies generally fall into one of the following primary categories:
- Term life insurance—This type provides coverage for a predetermined time. These policies may be more affordable; however, beneficiaries will not receive a payout if an insured’s death takes place after coverage has lapsed. Term life insurance may be suitable for parents who want to ensure their children are provided for until a certain age or homeowners seeking to ensure their family can pay off a mortgage.
- Permanent life insurance—These policies provide coverage throughout a person’s life. As long as a policyholder keeps up with their premiums, beneficiaries can receive financial assistance following the death of an insured. There are many subcategories of permanent life coverage, including whole life insurance and universal life insurance. Some policies may include opportunities to accrue cash value, which can then be borrowed against, used to pay premiums or invested.
What Does Life Insurance Cover?
Family members may need to manage many different expenses and financial losses following the death of a loved one. The right life insurance policy can limit out-of-pocket costs by helping to pay for the following:
- Funeral and burial costs
- Medical expenses not covered by health insurance
- Taxes and debts
- Administrative costs
Life insurance can also provide critical financial assistance by replacing the lost income of a provider. Families may be able to use these funds to maintain their quality of life or pay for future expenses, such as a child’s college tuition.
Get the Right Coverage
At the Income Resource Group, we have over 40 years of experience helping individuals and families secure their finances and futures with optimal insurance solutions. Contact us today to get started.