An example of a contract between an insurer and the policy holder is the life insurance. A guarantees fee of a death benefit is issued to specifically named beneficiaries. After the death of the insured, the beneficiaries usually acquire payment. Various companies across the globe offer insurance service that include life insurance. Companies that offer life insurance include Top Quote Life Insurance. Various types of life insurance coverage exist. Examples of this coverage include illness, disability and term life. The types of life insurance can be procured as standalone policy or they can be a rider. Life insurance has several benefits to the beneficiaries. This benefits are mentioned here.
The beneficiaries of a life insurance acquire a death benefit. The amount that is paid as a death benefit depends on the policy type. The number of years that payment has been made by the insured affects the death benefit paid. The given amount is meant to help cater for the funeral expenses. the funeral services are usually very expensive. This expense may be a burden to the family. After the death of the insured, the death benefit helps release the burden of funeral expense from the family. The debts that an insured had can be repaid by the death benefit. The repayment of debts can only be done after the death benefit has catered for the funeral service.
A benefit of the life insurance is that it can be used as an inheritance. This is in case that there is a living child, grandchild, or nephew. The amount can be used to pay some of their expenses after the insured’s death. The beneficiary’s education expenses can be paid using the life insurance. The benefit that is experienced by the beneficiary, is that they do not have to live in debt. A supplementary income is another use of the life insurance benefit. This is especially common in a family where the insured has a spouse. The payment will enable the spouse affected by the death to mourn before they get back on their feet. Essential bills can be covered for a couple of months or years by the benefit issued.
The life insurance benefit can be used to cater for taxes. The taxes that can be catered for are the federal taxes and the estate taxes. The determinant of whether the benefit will pay for the estate tax partially or wholly, is the residence. This helps not to place the burden on the beneficiaries. The insured can also have a life insurance policy for charity reasons. A specified charity benefits from the death benefit. This can be to ensure that some set goals are achieved even after the insured death.