When creating your estate plan, you should always consider selecting a life insurance policy that works best for you. Nobody likes to think about insurance–especially life insurance–however, choosing the right one may save you and your family a great deal in the future. While it may seem like a daunting task, taking a few simple steps now can make life far easier for your beneficiaries down the line. If you think you are ready to learn more about what life insurance has to offer, please read on:
What is life insurance?
A life insurance policy is, simply put, a contract with an insurance company. These insurance companies will provide you with a lump-sum payment upon passing in exchange for premium payments in your lifetime. This lump-sum payment is known as a death benefit, and it may help your family significantly.
Which type of life insurance should I get?
There are several different life insurance policies, though they are not all the best fit for you. This is why you must hire an experienced attorney to discuss your options. The most common types of life insurance policies are as follows:
- Term life insurance: Term life insurance provides your beneficiaries with financial assistance, ensuring their financial goals are met. Life insurance benefits are paid in one lump sum, not regular payments, despite the fact that they can replace lost potential income.
- Whole life insurance: Whole life insurance is permanent life insurance designed to provide lifetime coverage. However, these premiums are typically fixed payments with a cash value, and are generally higher than term life insurance.
- Universal life insurance: This is designed to provide the insured with lifetime coverage. These policies are generally flexible, and may allow the insured to raise or lower his or her premium payment or coverage amounts through their lifetime. Universal life insurance also typically comes with higher premium payments than term life insurance.
How long until I can collect life insurance benefits?
As long as all the proper documentation is in order, your insurance claim should be processed in 60 days or less. However, you can generally expect your claim to be processed in around 10 to 14 days. Hiring an experienced attorney can help ensure you provide all the necessary documentation to receive the insurance benefits you need.
Contact our experienced California firm
Working with an experienced estate planning attorney, such as Jaci Feldman of the Woodland Hills, California, Law Office of Yacoba Ann Feldman, will ensure that you are taken care of when you need it most. Contact The Law Offices of Yacoba Ann Feldman to schedule a consultation today.