September Is Life Insurance Awareness Month: What Virginia Residents Should Know

Life insurance may not be the most pleasant topic to think about, but choosing a life insurance policy is one of the most important financial decisions you can make. It can be crucial in making sure your loved ones are financially secure after you pass away.

What Is Life Insurance?

Life insurance is essentially a contract between you and your insurer; in exchange for regular payments called premiums, the insurer agrees to pay a death benefit to your chosen beneficiaries upon your passing. The death benefit is a lump sum of money that can be used for various expenses, including:

• Funeral costs
• Outstanding debts or mortgages
• Replacing lost income
• Education funds
• Living expenses

What Are Two Common Types of Life Insurance?

The following are two of the most common types of life insurance policies:

• Term life insurance is a policy that provides coverage for a set period of time, such as 10, 20, or 30 years. If you pass away during this time, your beneficiaries can apply for the death benefit. The premiums for this type of policy are typically lower than those for a whole life policy.
• Whole life insurance offers lifelong coverage with consistent premiums. Your beneficiaries receive the death benefit no matter when you pass away, so long as the policy is active. This policy can include a cash value component that grows over time and can be borrowed against or withdrawn.

Talk to us to learn more about these and other life insurance policy options.

Contact Us

Life insurance can be key in securing your loved ones’ financial future. Your local agent can help you decide what coverage best suits your needs and wishes. Contact Insurance Center of Winchester in Winchester, VA today for a personalized quote or more information.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.