Give the gift of peace of mind this holiday season! While it may not be at the top of wish lists, or something you can wrap neatly with a bow, life insurance is one of the greatest gifts you can give to your loved one. You can purchase a policy for yourself, and name your loved one as a beneficiary, or you can purchase a policy for your children, grandchildren, business partner, spouse, or even a charity!
What is Life Insurance?
In its simplest form, life insurance can be described as a contract between you and your chosen insurance company. In exchange for monthly payments, known as premium payments, your insurance company will dispense a specified amount of money to the beneficiary of your claim after your death. While it’s extremely common for most policy holders to choose a lump sum payment, you can opt for installment payments or other settlement options.
Why Does Life Insurance Make a Good Gift?
Life insurance provides financial security and peace of mind to its holders. If the worst happens, you know that your loved ones will not have to worry about financial hardships. Life insurance policies offer benefits that can be used for many purposes, including retirement funds, college funds, funeral costs, child-care, and more. Purchasing a policy for a minor may not seem like something that is necessary but on top of the benefits of giving them coverage even if they develop an illness that would potentially disqualify them from coverage when they are older, they can also benefit from lower insurance rates as an adult. Gifting a policy to a minor means monthly premiums will be lower, and it ensures that they will be guaranteed protection for life.
How Do I know What Policy to Purchase?
When considering what policy your loved one would find beneficial, there are a few things to consider. Think of their current income and future potential earnings, if they have children or plan on having children, any debts they may have, their spouse’s income or ability to work, and any assets they may own. Be mindful of where they live, as the cost of living can significantly differ from state to state.
What Information Will I Need to Purchase a Policy?
In order to purchase a policy for another individual, you must have a defined or insurable interest in them. This means you need to be able to prove that they are a family member, partner, spouse, or business partner, and that their death would have a direct impact on you. To buy the policy, you will also need to have specific information about them such as their date of birth, address, and social security number. If you are purchasing a policy for someone under the age of 18, you will have to make the payments until they reach adulthood to keep the policy active. You will be able to transfer ownership to them after they turn 18, or whenever you choose.
Give the gift of life insurance!
Gift your loved one peace of mind this holiday season by setting them up with a life insurance policy! Life insurance is the gift that keeps on giving. Our experts will help you find the coverage your loved one needs. Give us a call today: (800) 695-8224!