Florida Life Insurance - Insurance Agency
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Florida Life Insurance
No one wants to think about death — his or her own or of a loved one — but it is part of life, and it is important to be prepared. What would the impact be on your family if you were gone tomorrow? That may be the question you need to pose to yourself when deciding on life insurance.
Life insurance could be the answer to alleviate that impact. Life insurance is there for people to prepare for those tragedies, preventing families from facing financial loss. Life insurance works like this: In exchange for paying a set amount, or premium, to a life insurance company, just as you do for auto insurance, upon your death the insurance company will pay the policy amount to your beneficiary.
In simple terms, life insurance shields those who rely on your wages. If you die prematurely, life insurance provides your dependents with income. It also provides a way for your family to pay for your funeral costs and other necessities that may arise upon your death.
There are numerous types of life insurance in Florida, but they generally fall into two categories: term insurance and permanent insurance (whole life).
Term insurance, which is designed to meet temporary needs, provides protection for a specified time period and generally pays a benefit only if you die during the term. You might want this type of insurance if you decide that you only need coverage until your children graduate from college or until your mortgage is paid off.
Permanent or Whole Life insurance is the antitheses to term insurance, providing lifelong protection. As long as you pay the premiums, the full face amount will be paid to the beneficiary. Because it is designed to last a lifetime, permanent life insurance amasses cash value and is priced for you to keep over a long period of time.
When it comes to permanent life insurance, there are a variety of types from which to choose, but what is known as “whole life insurance” tends to be the traditional form. With whole life insurance, the face amount, known as the death benefit, and the premium, which is the amount you pay for protection each year, are fixed at the time you buy your policy and stay the same as you age.
Term insurance usually offers the greatest coverage for the lowest initial premium and is usually the answer for people with temporary needs. Permanent insurance may make more sense if you anticipate a need for lifelong protection, especially if you have dependants, such as young children, and a long-term mortgage.
The kind of coverage that is right for you depends on your particular circumstances, and the best way to figure out what makes sense for you may be to consult with a qualified insurance professional. If you are a single person with no dependents and little debt, life insurance may not be the right choice for you. But if you are the lone provider for your large family, life insurance could be a priority for you.
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