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Bill Lawson State Farm explains basics about life insurance

Staff Report • Feb 7, 2013 at 11:45 AM

The death of a family member can be devastating to survivors, both emotionally and financially. Life insurance can provide cash to help with your family’s immediate (such as funeral expenses, unpaid medical bills and taxes) and long-term needs (care for a disabled child or elderly parent expenses).

Three forms of life insurance are most common today:

Term life insurance. Temporary life insurance for a specific time period (one, five, 10 or more years) which can provide short-term coverage on a limited budget. Term insurance costs more to buy as you get older.

Whole life insurance. Premiums are generally level with cash value growth throughout the life of the policy. Cash values can be borrowed (with interest charged) during the insured person’s lifetime to help meet temporary or emergency needs. Funds borrowed reduce the death benefit and cash surrender value.

Universal life insurance. This offers many traditional advantages of whole life insurance (such as protection for life), but also offers flexibility (coverage amounts and premium payments are flexible to help meet changing needs during an insured person’s lifetime and are subject to certain conditions).

When you buy life insurance, you buy a promise of protection against financial loss caused by death. However, the promise is only as good as the company that stands behind it. In today’s marketplace, life insurance buyers should be concerned about 1) the financial strength of the insurer, and 2) customer service.

For more information about life insurance, contact Bill Lawson, State Farm® agent, at 423-239-9429 or visit www.statefarm.com.

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