Life Insurance

The Benefits of a Life Insurance

A well-managed life insurance policy is a necessity in modern times. It is a valuable asset that has the ability to protect family and loved ones in the unfortunate event of an untimely death, but there are also other advantages that such coverage can offer. Let us take a quick look at some of the lesser-known aspects of life insurance policies and then determine which are the top companies in the country that have been consistently rated the highest in providing this type of insurance.

Beneficiary

The most obvious advantage of a life insurance policy is the fact that upon death a family member or other loved one can access financial benefits to aid in covering any outstanding medical bills as well as to help contribute to any lost income. Most of us are aware that there is the possibility to have multiple beneficiaries, as in the case of a policy directly geared towards a spouse and any children. However, on also has the option to choose a contingent beneficiary. As the name denotes, a contingent beneficiary is next-in-line should an act of god befall the primary recipient(s). So, the three choices one has are;

  • Single Beneficiary
  • Multiple Beneficiaries
  • Contingent Beneficiary

Types of Life Insurance Policies

There are a number of options when choosing a life insurance policy, and these choices are based on the needs of a specific in individual or household.

For instance, a whole-life policy is a type of insurance that provides life insurance with an investment fund. This package will pay a certain amount to the beneficiary parties upon death, while a portion of the premium is also used as an investment vehicle to increase the overall value of the policy. One can then borrow against the accrued cash value without any tax obligations.

Variable life insurance policies are similar in the fact that they also can conglomerate cash value over time, but they do so by utilizing an investment fund whose value depends on the performance of a stock or mutual fund. Thus, returns are not guaranteed.

A fixed-term policy has no investment component, but rather represents a policy that last a certain amount of time as long as monthly premiums are paid. Upon death, a fixed amount of money will be paid to the beneficiaries. To briefly recap, some of the main forms of life insurance policies are:

  • Whole-life policy
  • Variable-life policy
  • Fixed-term policy

Now, let us quickly examine the top three life insurance providers.

Metlife

Metlife is the single largest life insurance provider in the United States. Notwithstanding that this company has been in operation since 1868, their insurance services are quite popular due to the fact that they offer a variety of packages to choose from while offering flexible payment options and a high level of customer service.

Prudential

This multinational corporation offers some distinct advantages with their life insurance policies. Known as ProLife 65, it offers standard coverage up until the age of 65, but Prudential also gives the policyholder the ability to obtain waivers for periods of unemployment or disability.

John Hancock

One of the oldest insurance providers in the United States, John Hancock insurance policies are some of the most popular due to their familiarity in the industry. Furthermore, they offer a broad portfolio to meet the specific needs of individual clients and they have received an "A+" rating from A.M. Best, a financial products analysis company.

So, we can easily see the added value that life insurance policies can offer the individual and family in times of duress as well in times of economic hardship. With a bit of research and by comparing the different types of policies and top-rated companies, an educated decision can the be made on which type of coverage represents the most logical choice.

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