Life Insurance
If your loved ones depend on your salary or the services you provide (e.g., child care), it may be time to consider purchasing a life insurance policy. This can help protect your family from financial hardship if you die unexpectedly.
We’re here to help you find the insurance policy you need. Contact AJ Gambardella Associates, LLC in Stratford, Connecticut, to learn more about our insurance coverage solutions and to get an insurance quote today.
What is Life Insurance?
Life insurance is an agreement between you and your insurance company that binds an insurer to provide a death benefit to your beneficiaries when you pass away. It is a way to invest in the future of your family’s financial security.
While many individuals can benefit from this type of insurance, it may be particularly beneficial in the following circumstances:
- You have a child
- You have a mortgage
- You own a business
- You have debt
Without an insurance, these financial burdens could fall on your beneficiaries when you die.
How Does it Work?
In exchange for your premium, your insurance company agrees to pay your beneficiaries a lump sum—known as a death benefit—when you die. There are two primary types:
- Term life insurance provides coverage for a set period of time, or “term” (e.g., 10, 15 years). At the end of the term, your insurance company will no longer provide your beneficiaries with a death benefit. Term life insurance is generally the cheaper of the two options and may have a level premium, meaning you pay a set rate for the length of your policy.
- Permanent life insurance provides coverage for your entire life. Examples include whole life insurance and universal life insurance. Additional benefits of these policies, depending on the type of permanent life insurance selected, may include a level premium with an increasing amount of coverage and the ability to accrue cash value that can be withdrawn, borrowed against or used to make future insurance payments.
Speak to your insurance agent to learn which type of life insurance coverage could be right for you. Call AJ Gambardella Associates, LLC to learn more about the types of insurance policies we offer.
What Does it Cover?
Here are some of the common expenses an insurance policy’s death benefit can help pay for:
- Estate taxes associated with the transfer of your estate
- Final expenses associated with your burial, funeral and other estate administration costs
- Lost income to support your loved ones (e.g., spouse, children) who depend on your salary for financial security
Additionally, insurance policies may allow you to leave an inheritance to your beneficiaries after your passing.
How Much Does it Cost?
The cost of your insurance policy will depend on numerous factors. Your insurance company may look at the following variables when determining the cost of your premiums:
- Age
- Gender
- Health
- Lifestyle
Your insurance company may ask you to take a medical exam when you apply for life insurance.
Contact AJ Gambardella Insurance for more information on our life insurance coverage solutions and to speak to an insurance agent.
How Life Insurance is Paid Out
When a policyholder passes away, the beneficiaries must typically file a claim to receive the death benefit.
This process typically involves contacting the insurance provider and submitting a claim form and a certified copy of the death certificate.
The insurance provider will then review the claim, which may include verifying the policy details and the cause of death.
Once the claim is approved, the death benefit is paid out to the beneficiaries as either a lump sum or in installments, depending on the policy terms.
Beneficiaries should understand the specific requirements and documentation needed to ensure a smooth and timely payout.
Why it’s Important
Life insurance is essential as it can offer financial stability and reassurance for your loved ones when you pass away. It can help ensure your beneficiaries are not burdened with financial hardships, such as funeral costs, outstanding debts or daily living expenses.
Additionally, it can help maintain their standard of living, fund education and secure their future. Having an insurance policy gives you peace of mind by knowing that your family will be provided for.
Getting Life Insurance
At AJ Gambardella Associates, LLC, we understand the importance of protecting your family from financial hardship. Contact us today to learn more about our insurance option and to get an insurance quote.