Even amid grief and loss, people may have little reprieve from certain financial obligations. With this in mind, families and individuals should prioritize acquiring and maintaining appropriate life insurance. In the aftermath of tragic loss, these policies may provide family members and loved ones with the funds and resources needed to manage financial stress.  

What Is Life Insurance? 
Life insurance is a type of insurance product directly tied to a policyholder’s death. These policies may come in many forms but generally exist to provide financial reassurance and security for beneficiaries following the death of an insured. 

How Does Life Insurance Work? 
A life insurance policy’s exact capabilities, limitations and details may vary. These policies usually include premiums that must be paid regularly to maintain coverage. If an insured’s death occurs while the policy is effective, life insurance companies may provide a payout to beneficiaries that can help them manage financial obligations or retain a source of income. 

What Does Life Insurance Cover? 
Life insurance payouts may provide financial assistance for many expenses and losses both directly and indirectly related to an insured’s death, such as the following: 

• Funeral expenses
• Medical bills
• Administrative costs
• Estate taxes
• Income replacement 

What Are the Different Types of Life Insurance? 
When shopping for a life insurance policy, consider the following primary types: 

• Term life insurance—A term life policy provides coverage for a predetermined period of time (e.g., 10, 20 or 30 years). If an insured’s death occurs while the policy is active, a payout can be provided to beneficiaries. This type of life insurance is generally more affordable than permanent life insurance.
• Permanent life insurance—A permanent life insurance policy can provide financial protection related to an insured’s death throughout their entire lifespan; whole life insurance is a popular option. These arrangements may also include various financial opportunities, such as the ability to accrue cash value over time. 

Do I Need Life Insurance? 
Life insurance needs are unique. When exploring options and acquiring coverage, individuals and families should consider other financial assets and savings that would be available to children, spouses and others who would be in need following a death in the family. Outstanding debts, such as mortgages, should also be considered, as well as anticipated future expenses (e.g., college tuition). 

We’re Here to Help 
At the Anthony Mercado Agency, we’ve served families and individuals in the Orwigsburg and Allentown, Pennsylvania, areas since 2009. We will draw on our extensive knowledge and experience to help you understand and address your life insurance needs. Contact us today to learn more or to get personalized life insurance quotes.