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Life insurance offers a variety of benefits that can make it a worthwhile investment. It can help protect your family financially in the event you unexpectedly pass away, offer reasonable premiums, and give you peace of mind. Here’s a closer look at what life insurance covers, the benefits it offers, and why it may be worth it to have a life insurance plan.
You can think of life insurance as a contract between you and an insurance company. As long as you pay your premiums, the insurance company will give a death benefit payout to your beneficiaries after your death.1
Life insurance can be worth the investment because it can help give your loved ones financial security. Your beneficiaries can use the death benefit payout for any purpose they’d like, such as helping pay off the mortgage or covering everyday bills. They’ll be able to help ease the financial burden that your death may bring and continue to live their lives.
Don’t wait until it’s too late. Help cover yourself and your family with coverage from Aflac.
Several of the most noteworthy benefits of life insurance include:
A death benefit is likely the primary reason you want to apply for life insurance. It’s the amount of money your insurance company will pay your beneficiaries if you pass away during your policy’s term. In many cases, death benefits are issued as a lump-sum payment, but your beneficiaries may be able to receive it in installments if they prefer.
Cash value refers to the savings aspect of some types of life insurance, like whole life insurance and universal life insurance. If your policy has a cash value, a portion of your premiums can help fund it. Over time, the cash value earns interest and becomes available for you to access in a variety of ways while you’re still living.
Riders are optional features you can add to your life insurance policy, typically for an extra cost. A rider may help cover life events, such as critical illness, chronic illness, and terminal illness. It can also increase the death benefit in the event of accidental death or provide a death benefit for your child until they’re an adult.
The death benefit paid out by a life insurance policy is usually not taxable.2 This means that if your beneficiaries receive it, they typically can use the money without worrying about taxes. Of course, keep in mind that there are exceptions to this rule you should familiarize yourself with before you move forward with a policy.
The benefits of getting a life insurance policy include:
With a life insurance policy, you can feel confident that your loved ones will be better financially stable after your death. They’ll be able to help pay for your funeral and help cover the mortgage, debts, everyday expenses, and other costs.
Factors like your age, gender, health, policy type, and coverage amount will dictate the cost of your life insurance. In general, however, you’ll be able to find a plan that fits your lifestyle.
Depending on the type of life insurance policy you choose, you may have access to a cash value account. It usually earns interest and sometimes becomes available for you to use as you please. You may withdraw money or take a loan against it.
You can apply for a life insurance policy quickly, often online from the comfort of your own home or office. All you have to do is share some personal information and answer a few questions about your health and lifestyle.
Life insurance can help reassure you that your loved ones will be okay financially in the event of your unexpected death. They’ll be able to grieve and focus on their futures without a huge financial burden on their plate.
A few types of life insurance you might want to explore include:
Life insurance can offer many benefits, from inexpensive coverage to financial security for your loved ones. Now that you know what life insurance covers and have a better understanding of its benefits, you may be wondering which policy is worth getting. Aflac offers enhanced term and whole life insurance plans that can help you and your family meet your financial goals. We also offer final expense whole life insurance to help loved ones prepare for end-of-life costs.
Life insurance may be worth it if your loved ones depend on you financially and may benefit from additional financial support later on. Chat with an agent today to explore your life insurance options and get a quote.
1 Investopedia - Life Insurance: What It Is, How It Works, and How to Buy a Policy. Updated February 20, 2024. Accessed April 23, 2024. https://www.investopedia.com/terms/l/lifeinsurance.asp.
2 Forbes – Is Life Insurance Taxable? Updated Sep 20, 2023. Accessed April 23, 2024. https://www.forbes.com/advisor/life-insurance/is-life-insurance-taxable/.
Life – 68000 Series - In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100-A68400. In New York, NY68100-NY68400. Term/Whole Life – B60000 Series – In Arkansas, Idaho, Oklahoma, Pennsylvania, Texas, & Virginia, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Group Whole Life - Q60000 Series - In Arkansas, Policy Q60100CAR. In Delaware, Policy Q60200M. In Idaho Policy Q60100CID. In Oklahoma, Policy Q60100COK. In Oregon, Policy Q60100COR. In Texas, Policy Q60100CTX. Group Term Life Q60000 Series - In Delaware, Policies Q60200C. In Arkansas, Idaho, Oklahoma, Oregon, Texas, Policies ICC18Q60200C, ICC18Q60300C, ICC18Q60400C.
The content herein is provided for general informational purposes and is not provided as tax, legal, health or financial advice for any person or for any specific situation. Employers, employees and other individuals should contact their own advisers about their situations. This is a brief product overview only. Coverage may not be available in all states, including but not limited to DE, ID, NJ, NM, NY, or VA. Benefits/premium rates may vary based on plan selected. Optional riders may be available at an additional cost. Plans and riders may also contain a waiting period. Refer to the exact plans and riders for benefit details, definitions, limitations and exclusions. For availability and costs, please contact your local Aflac agent/producer.
Aflac insurance coverage is underwritten by American Family Life Assurance Company of Columbus. In New York, coverage underwritten by American Family Life Assurance Company of New York.
Aflac Final Expense insurance coverage is underwritten by Tier One Insurance Company, a subsidiary of Aflac Incorporated and is administered by Aetna Life Insurance Company. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (Tier One NAIC 92908).
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