Life Insurance
While we can’t predict the future, we can plan for it today. Life insurance offers financial security for your family in the event of your unexpected passing. It may provide funds that can help cover expenses like loans, childcare, education, healthcare and other everyday bills.
Estrella Insurance Agency in Aurora, Illinois, can assist you in understanding life insurance policy features, explore various policy options, and understand how they operate.
What Is Life Insurance?
Life insurance is a contract between an insurance policyholder and an insurance company. In exchange for a premium, the insurer promises to pay an amount of money upon the covered person’s death or after a certain time period, so long as the policy is in force.
There are two primary types of life insurance:
- Term life insurance offers coverage for a specified period, with fixed premium payments throughout the policy’s duration. Common term lengths include 10, 20 or 30 years. If you pass away during the term, your beneficiaries can claim the death benefit. After the term ends, under specific plans, you may have the option to renew the coverage annually, but the renewal rates typically increase yearly.
- Permanent life insurance typically offers lifelong coverage and the potential to accumulate cash value, which can increase over time. You may have the option to access the cash value during your lifetime. The extended coverage period, cash value accumulation, and other policy nuances contribute to the higher cost of permanent life insurance than term life.
How Much Is Life Insurance?
Life insurance policies vary and insurance regulations differ by state. Before committing to a life insurance plan, insurers consider several factors in determining premiums, such as age, gender, health history, lifestyle, chosen coverage and policy type. Typically, younger and healthier individuals receive better quotes. If you’re considering term life insurance or permanent life insurance, Estrella Insurance Agency can help.
Is Life Insurance Important?
Life insurance isn’t just for you—it’s also for your loved ones. It can help cover everyday expenses and more for your family if something happens to you. Having a life insurance policy can alleviate your family’s concerns regarding finances and other details of your passing.
For over 20 years, Estrella Insurance Agency has served and protected local communities. With our deep understanding of the market and insurance options, we’re dedicated to finding the perfect policy for your needs. Contact us today to get started.