Life Insurance is a contract between a policyholder and an insurance company. These policies work in a way in which the customer pays a monthly premium, and in the case of their death, the insurance company will pay a sum of money to the beneficiaries chosen by the insured (these beneficiaries will be named in the contract).
- How does a life insurance policy protect me?
A life insurance policy is not designed to protect the policyholder, instead it is designed to help the loved ones of the policyholder. These loved ones are named as beneficiaries in the contract and will receive a payout if the insured loses their life.
- What are the different types of life insurance policies?
There are various types of life insurance policies, however the main two are Term Policies and Permanent Policies. Term Policies offer a payout only if the death occurs during a specified time, which is the term of a policy. These terms usually last up to 30 years. Permanent policies offer a payout whenever there is a death. There are various variations of permanent policies. Contact us at the Archer Insurance Agency for more information!
- Do I need a life insurance policy?
Obtaining life insurance should be viewed as a financial safety net for one’s family or loved ones. Oftentimes after a death a family is subject to loss of income, medical bills, and costs related to the death. Having a life insurance policy will help protect one’s family from having to suffer the financial burden of a death on top of the emotional burden. Although life Insurance is not legally required in the State of California, at the Archer Insurance Agency we can help you navigate the infamously confusing waters of life insurance.