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Risk is a part of everyday life and regardless of preventative measures we make to minimize the chances of adverse events happening, we can’t prevent all bad events in our lives. However, we can buy insurance to help deal with the financial fallout from these adverse events. More specifically, life insurance offers financial protection for surviving dependents after the death of an insured person.
Life insurance policies come in five different options:
Choosing a policy and coverage that best fits your circumstances enables security and is a convenient tool for saving and tax-free estate planning. Compared to other insurance policies, there are two features of life insurance that makes it unique.
First, the beneficiary of a life insurance policy is not the insured person, but other people that has been designated as beneficiaries.
Second, unlike other types of insurance, the event that it covers (death) is uncertain in any given year but is certain in the long term. As the person ages, the probability of death increases over the term of the life insurance policy and, therefore, the insurance company must accumulate funds to pay for a claim that is going to occur with an increasing probability. That’s the reason why it gets more expensive to buy life insurance as you age.
Life insurance policies are also a very tax-efficient way to transfer wealth to your loved ones as death benefits are typically paid to beneficiaries income tax-free.
Let’s make sure you’re protected. Life is full of risks. To your family. Your assets. Your future. Vero, the only way to accurately identify and evaluate your risks.
Life is full of risks. To your family. Your assets. Your future. The problem is traditional solutions that propose traditional answers, one policy at a time.
Vero’s fast and free Protection Plan is an unbiased analysis of all your risks. We’ll recommend what insurance to buy — and which policies you can safely cancel to save money.
Insurance is essential, yet the premiums add up quickly and it takes knowledge and analysis to truly lower the costs. Learn more.