Life Insurance

When a person dies, those they love must support themselves and each other through a difficult time. Amid the challenges of the grieving process, financial stress is the last thing that should be on someone’s mind. Like most types of insurance, the right life insurance coverage can provide critical financial assistance in what otherwise might be the darkest of hours. These policies can provide invaluable comfort, and Epic One Insurance Group is here to help those in the Elgin area understand their options. 

What Does Life Insurance Cover? 
In most cases, the primary purpose of a life insurance policy is to provide financial assistance to beneficiaries following the death of an insured. Although the details of your specific coverage may be customizable, in general, your insurance can be relied on to help beneficiaries pay for the following expenses and damages: 

• Funerals
• Burial expenses
• Remaining debts
• Medical costs
• Administrative costs
• Estate taxes
• Lost income 

How Can Life Insurance Be Used While Alive? 
Life insurance coverage can be customized to suit your specific needs, and it may even be possible to use the value of your policy well before your passing. 

• Accessing cash value—Many permanent life insurance policies (e.g., whole life insurance) are capable of accruing cash value, which can then be used in the following ways:  
  • Taking out loans or withdrawing funds from your policy
  • Surrendering your policy to have the policy’s value returned to you
• Policyholders should think carefully before taking these steps. Borrowing against your policy’s value can affect your premiums and the death benefit available to your beneficiaries.
• Acquire living benefits—It may be possible to allocate a portion of the value of your life insurance for the following means:
  • Medical care for insureds with chronic or terminal illnesses
  • Long-term care (e.g., assisted living facilities, nursing homes, in-home services)
• Selling your policy—If you no longer need your life insurance policy or it lapses, it can be possible to sell the policy to an investor on the secondary market. The agreed-on price is generally more than the accrued cash value but less than the policy’s total value. The buyer becomes responsible for continuing to pay premiums and will be listed as the new beneficiary. This is a complicated process and may not be available for all policyholders.  

When to Buy Life Insurance 
Regardless of your age or health, you should not put off thinking about life insurance. While it may seem impractical to pay for coverage when you are in good health, this can help you save money and accrue more cash value over time. As a general rule, premiums for a new policy can be expected to increase as you age. 

If anyone depends on you and your income, or if you carry debt that would be passed on to others in the event of your death, life insurance is essential. Without sufficient coverage, your loved ones may bear responsibility for your financial obligations or lack the resources to maintain their quality of life.  

Selecting term life insurance may require careful consideration of timing, as these policies provide coverage only for a certain period. This can be useful if you expect your loved ones will need financial assistance only until a specific date. For example, you might purchase a policy to ensure your children are provided for until they reach adulthood or to help your family pay off your mortgage. 

Get the Right Coverage 
Life insurance is a complicated type of coverage that comes in many forms and can be used for various means beyond simply paying out a death benefit. Regardless of what type of policy you select or how you plan to use it, it’s essential to speak with a qualified expert before making any decisions. 

We’re here to help. With over 50 combined years of serving the Elgin area, the agents at Epic One Insurance Group have the knowledge and experience to help you understand your life insurance options and acquire optimal coverage. Contact us today to get started.