I NEED TO PROVIDE MONEY FOR MY FAMILY IF I DIE OR BECOME SERIOUSLY ILL

I WANT TO PROVIDE BENEFITS FOR MY EMPLOYEES
February 27, 2019
I NEED TO COVER MY SALARY IF I BECOME DISABLED
February 27, 2019

A death or critical illness in the family can sap savings and make day-to-day life more difficult and expensive. There are a couple of ways to lessen these risks:

TERM LIFE INSURANCE

Provides payment of a fixed amount upon the death of the insured person. Some policies also pay a partial benefit upon diagnosis of a critical illness. Amount of the policy premium is based on the dollar amount of the benefit, length of the term, and the person’s age and health. For example a 10-year term life policy for $250,000 would pay that amount if the insured person dies during the 10-year period. After ten years, you must either renew or find a new term policy

Example: Dean and his wife Julie have just had a baby. They have a mortgage and do well on their two incomes. If Dean were to die, Julie would have trouble making mortgage payments and caring for their child. Dean purchases a $500,000 life insurance policy for a 15-year term. This will pay Julie and the baby $500,000 for their use as needed.

CRITICAL ILLNESS INSURANCE

Pays a fixed amount of money upon diagnosis of any of the listed critical illnesses. This money can be spent for any kind of expense—not just medical expenses. Policies are for specified dollar amounts.

Example: Ann runs a small business that employs two other people. The business is new and struggling to become profitable. If anything happened to Ann, the business would suffer greatly. Ann purchased a critical illness policy in the amount of $150,000. If diagnosed with one of the critical illnesses, the plan would pay her $150,000 to support herself and the business.

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