Saltmarsh Insurance Agency | Life
Saltmarsh Insurance Agency’s experience in life insurance spans three generations. Our Life Insurance Experts can help you understand which type of policy is right for you based on your unique needs. Our number one goal is to financially protect you and your family following one of the hardest life events they can face.
How does Life Insurance work?
Life Insurance is an agreement between you and a provider that guarantees a lump sum (a “death benefit”) to your beneficiaries after you pass. The death benefit can be used for whatever purpose the beneficiaries choose, like paying everyday bills, paying a mortgage or putting a child through college. Having this safety net ensures your family can financially bear the difficult transition and be protected.
What does Life Insurance cover?
For most policies, beneficiaries can spend the death benefit on whatever they see fit. There is no discretion as to what the death benefit goes towards, but most often it is for funeral arrangements, mortgages, tuition, or other trivial everyday expenses just to get by. Specifically, the death benefit is often used for:
- End-of-life expenses, such as funeral and burial costs
- Mortgage payments
- Tuition payments
- Personal debt, including outstanding loans or credit card bills
- Day-to-day expenses, like groceries
Who needs Life Insurance?
The short answer is, everybody. The real question is, why do you need it?
- Parent with minor children, looking to leave your children with financial security.
- Parent with special-needs adult children, looking to use the death benefit to open a special needs trust.
- Senior who wants to leave money for your adult children who’ve provided care.
- Parent of a child, or a young adult who wants to lock in a low rate.
- Wealthy family who expects to owe estate taxes looking to cover the cost of the tax and preserve the estate.
- Family needing financial protection from burial and funeral expenses.
- Business with key employees, like a CEO, that needs financial protection in their absence.
- Human, and you want your loved ones taken care of.
What are the main types of Life Insurance?
Term vs. Permanent
Term coverage stretches a period of your lifespan before ending. Common terms are 10, 20, or 30 years. The advantage of Term coverage is that it allows you to balance affordability with long-term financial strength. So, that if the policyholder passes away during the term, their beneficiaries will receive the death benefit.
In contrast, this type covers you throughout your lifespan and accumulates cash-value.
- Whole Life Insurance accumulates cash-value, that policyholders can self-loan to financially support themselves while they’re still alive.
- Universal Life (UL) also has a cash-value component that earns interest, though with a more flexible premium that can be adjusted over time to fit your needs.
“Permanent life insurance stays in effect as long as the policyholder pays the premium.”
Talk to a Life Insurance Expert at Saltmarsh Insurance Agency
Our (human!) Life Insurance Experts are here to speak with you one-on-one and answer any questions you have going into choosing the right policy. We greatly understand the gravity of this decision and what’s at stake for your family. Our number one goal is protecting you and your family from financial hardships following one of the most difficult life events one could experience.