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What to Know About Life Insurance Planning

What to Know About Life Insurance Planning

The thought of life insurance is rarely appealing, though unfortunately, it is a necessity for most people. The word “insurance” alone deters many people from ever investigating what it is about. Fortunately, with the help of a knowledgeable attorney, you can make the process as painless as possible. If you believe it is time to start looking into life insurance, here are some of the questions you may have:

What is life insurance?

In simple terms, a life insurance policy is a contract between you and an insurance company. In exchange for premium payments in your lifetime, insurance companies will provide your beneficiaries with a lump-sum payment upon your death. 

Are there different types of life insurance?

Since everybody’s financial situation is unique, there are various types of life insurance policies designed to best work for different situations. The three primary types of life insurance policies are as follows:

  • Whole life insurance: Permanent life insurance made to provide you with lifetime coverage. The premiums are generally higher in a whole life insurance policy and are usually fixed payments with a cash value. Since the cash value functions as a savings component and may accumulate tax-deferred over time, it is sometimes used as an estate planning tool, allowing you to preserve the assets you plan on transferring upon your passing.
  • Universal life insurance: A lifetime coverage insurance policy. These policies are flexible and may allow you to raise or lower your premium payment or coverage amounts throughout your lifetime. Because of the lifetime coverage, however, a universal life insurance policy will generally come with higher premium payments than term life insurance.
  • Term life insurance: Term life insurance replaces lost potential income during working years. These insurance policies can assist your beneficiaries and help ensure your family’s financial goals are reached. Though term insurance can replace lost potential income, life insurance benefits are paid in a lump sum, as opposed to regular payments.

You should strongly consider hiring an experienced attorney to discuss which of these policies is best for you.

How long until I receive life insurance benefits?

Usually, life insurance claims are processed in no more than 60 days. Provided you ensure all necessary documents are in your claim, it will generally be processed in 10 to 14 days. When you hire an experienced attorney he or she will check to confirm everything is in order before you proceed.

Contact our experienced New York firm

The Lauterbach Law Firm is proud to serve clients throughout Rockland County who are faced with legal matters related to estate planning, real estate, foreclosure defense, landlord-tenant law, business law, and criminal defense. If you require the services of an experienced team of attorneys, contact The Lauterbach Law Firm today to schedule a consultation.

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