If insurance is something that you do not know a lot about, then you likely have a lot of questions about life insurance and how it works. These are some of the basics of life insurance from Don Allred Insurance serving Burlington, NC. Once you know a bit more about it, you can decide if it is the right option for you.
- Who is it for? While you do purchase life insurance for yourself, it is actually a form of life insurance that is designed to help your beneficiaries.
- Who are your beneficiaries? You get to choose your beneficiaries for your lie insurance policy. These are the individuals who will receive the life insurance money upon your death. You can choose to have one beneficiary or multiple ones. You can also determine the percentage that each of your beneficiaries get if you have more than one beneficiary designated. You can also change beneficiaries at any time.
- How is cost determined? If you are looking into life insurance, you are probably wondering how much you will have to pay for coverage. Rates are typically determined based on age and your health. There are basic rates also depending on when you sign up for insurance. You may be able to lock in rates as well.
- Is insurance coverage automatic? If you choose to enroll in life insurance through an employer and during your new hire open enrollment period, then you will likely be automatically approved. However, if you opt for a personal policy, then you will likely have to undergo medical underwriting and there is a possibility that you would be denied coverage depending on your health state.
If you think life insurance is a good option for your current situation, be sure to contact Don Allred Insurance serving Burlington, NC to learn more about your options.