Life Insurance in Providence, Rhode Island
There are numerous benefits to having life insurance. Depending on your policy, it may help reimburse your family for estate taxes and final expenses associated with your passing. It may also help provide financial support to your loved ones by supplementing your lost income and enabling you to create an inheritance. Contact Gilbane Insurance in Providence, Rhode Island, to learn more about life insurance coverage.
What Is Life Insurance?
A life insurance policy is a contract between you and your insurer. In exchange for your premiums, your insurance company is legally obligated to provide death benefits to your chosen beneficiaries if you pass away while your policy is active. The duration of your life insurance policy and the benefits provided may vary depending on your choice of life insurance and your insurer.
Types of Life Insurance
Many life insurance policies may be available to you. The right policy will depend upon your needs (e.g., short-term or long-term coverage) and your coverage preferences. The following are examples of two primary types of life insurance coverage:
Term life insurance can provide coverage for a set duration (e.g., 10 years or 20 years). After this term ends, your insurer will no longer provide your beneficiaries with death benefits. Term insurance is generally the cheaper of the two policies.
Permanent life insurance can provide coverage for the duration of your life. Depending on your insurer, you may be able to accrue wealth with your permanent life insurance policy by borrowing or withdrawing money from your policy. These policies typically have a level premium, meaning your insurance premiums will remain the same over time, even when you age and require more medical attention. Permanent life insurance may also be known as universal life insurance or whole life insurance.
Who Needs Life Insurance?
You might not need coverage if you have no spouse or children and no outstanding debts or loans that could fall to your family if you pass away unexpectedly. The following are examples of situations where life insurance might be needed to provide financial protection for your loved ones:
- You want to pass on your assets.
- You have debt (e.g., college loans, mortgage).
- You’re a stay-at-home parent.
- You have children.
- You have a special-needs family member.
- You own property with someone (e.g., spouse, family member).
- Your family can’t afford burial or funeral expenses.
- You have pre-existing conditions.
How Do I Buy Life Insurance?
The agents at Gilbane Insurance Agency are here to help you understand your insurance needs. Contact us today to learn more about our life insurance policies and to get a free insurance quote.