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Texas Insurance Blog

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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