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Texas Insurance Blog

Life Insurance: What You Need to Know

Planning for the future means different things to different people. Savings for your kids’ college education or your own retirement often come to mind, but one type of future planning that often gets overlooked is life insurance. Life insurance is a crucial piece of the future planning puzzle that you need to consider. Here at InsPeak, serving Arlington, TX, and the surrounding areas, we want to help you make well-informed insurance choices. Keep reading to learn more about life insurance.

Do I Need Life Insurance?

Yes, everyone needs life insurance. Everyone will have end-of-life expenses, and leaving those expenses for others to pay for can be stressful. The last thing your family needs to worry about once you pass away is how to pay for your funeral. They will already be grieving, and this is an unnecessary burden that you can handle now with smart life insurance purchases.

How Does Life Insurance Work?

When you purchase a life insurance policy, you will make monthly payments to the policy. The policy will be set for a certain benefit amount if you die. If you have purchased life insurance, the policy amount will be paid to the designated beneficiaries you appoint. These individuals can use that money to pay for their end-of-life expenses. 

What Can Life Insurance Be Used For?

Life insurance money should, first and foremost, be used for your end-of-life expenses. If money is left over, it can be used to pay for other things your family may need without your income.

If you have questions about life insurance or want to purchase a policy, please get in touch with us at InsPeak, serving Arlington, TX, and the surrounding areas. We are here for your insurance needs.

Can I Gift Life Insurance to a Family Member?

At InsPeak in Arlington, TX, we help our clients get the coverage they need for all the different seasons of life, including death. While it can be upsetting to ponder how your family might provide for themselves after you pass, it’s crucial that you think about this aspect of planning the future before it happens.

While you can try to get a life insurance policy for yourself to provide for your family, you may have questions about whether you can give a gift to a loved one who keeps on giving by gifting them a life insurance policy. It’s best to research all your options. Even though each life insurance policy has unique terms and limits, we can offer some general insight into how you might be able to answer those questions.

Can you give life insurance as a gift?

Since life insurance can be so useful and provide a level of peace for someone who is worried about their family struggling financially after they leave this world, you might think there’s no better gift in the world than it. Although life insurance can be helpful, it’s not always possible to gift it. If the loved one to whom you want to give the life insurance policy doesn’t know about the life insurance policy or consent to it, you won’t be able to gift it to them.

Before you can give life insurance as a gift, you need to gather some necessary things like proof of insurable interest, a physical exam, consent from the recipient, and other pertinent materials. Someone will also need to be responsible for paying premiums to keep the policy active.

Schedule A Consultation Today!

For more information on our life insurance policies at InsPeak in Arlington, TX, call our office today!

What is a Death Benefit?

A death benefit is the amount of money paid out to a beneficiary upon the death of an insured person. There are often tax advantages, and your InsPeak representative would be able to give you more specific details. 

Life Insurance & Death Benefit: What  You Need To Know

Life insurance is not a requirement for residents of Arlington, TX, but many decide to invest in this instrument to aid the survivors they leave behind. A named beneficiary can be a spouse, adult child, or almost any person. You can also leave your estate to a trust or a charitable organization. 

It’s important to keep your insurance up to date through any significant life changes, like the birth of a child, getting married, or obtaining a divorce. Arlington, TX minors can be designated as beneficiaries but will often need to have a guardian or a trust appointed over their inheritance for a specified time.

Death benefits can come in lump sum payments, annuities, or installments, and this can be at the behest of the insured party or decided by the recipient after the insured’s passing. Beneficiaries can sometimes decide to have monies allocated, for example, into a retirement account, though these decisions will change the way in which taxes are assessed. 

Life insurance premiums must be kept current for a death benefit to be paid, and the beneficiary is often required to provide the insurance company with proof of death. Generally speaking, a life insurance policy is one way to leave funds while avoiding probate, a sometimes lengthy legal process that can generate costs of its own and delay payments. 

Contact Us For More Information

InsPeak works hard to provide you with the insurance package to meet your needs. Our knowledgeable agents can be reached by visiting us online, calling, or stopping by the office, and we invite you to do so today!

Who Needs Life Insurance?

Most people do not think about life insurance until they have someone in their life that relies upon them financially. But more people than those with dependants should consider life insurance. InsPeak offers insurance policies for people of all ages or walks of life. We serve Arlington, TX, and the surrounding areas. 

Who Exactly Needs Life Insurance, and Who Does Not? 

The short answer is everybody needs life insurance. But to be more concise, consider what life insurance is used for. The minimum amount of life insurance is enough to cover funeral and burial expenses. This final living cost can range from about $3,000 to $15,000 depending on details and location. Even if you are a single person with an apartment and no dependants, you likely want to cover yourself, so it is not left to your parents or relatives in their time of grief. Further, many people purchase a small policy for their children, so the last thing they are worried about in a worst-case scenario is cost. 

Naturally, anyone with dependents, a mortgage, and/or other expenses needs a life insurance policy covering at least the home’s cost with a little left over to help their spouse during the first year of adjustment. The more assets you have, the more insurance you need to cover them and protect your loved ones. We are happy to answer any questions about life insurance for people in all situations. 

Contact us at InsPeak for more information or purchase a life insurance policy that suits your specific situation. We serve Arlington, TX, and the surrounding areas with friendly expert service. Call today for protection for your home, auto, life, and business.

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