Life Insurance


Calhoun and Coosa Insurance Agencies-Life Insurance

Before getting into the different types of life insurances that are available, we’d like to clearly explain what life insurance actually is, since there can be confusion about this. Life insurance is a savings formula which essentially covers us from two different risks:

Death and Survival

  • Death: Imagine a family that counts only on the father’s earnings. The wife and the children do not work. In the hypothetical case of the father passing away, it would represent a serious financial problem for the family. How would they continue to pay their bills? Well, a life insurance policy is what would cover this risk. The life insurance company would pay a certain amount (all at once or in monthly payments), and the family would be able to pay their bills. 

  • Survival: or contingencies of it, such as retirement or disability. Following the same example above, if the father of this family had an accident and became an invalid and could not work, the life insurance company would compensate the family for this.
Life insurance intends to maintain your family's financial situation as it was before the accident or death.

What You Need To Know

When it comes to these types of insurances, it is important to describe three different involved parties: the insured (the person whose life the policy covers), the policyholder (the person who hires the insurance company and pays the premium (this can be the same as the insured person), and the beneficiary (the person who will receive the payment by the insurance company).

The most accepted classifications based on the purpose of the life insurance are:
Term Life Insurance

If the insured passes away before the end of the contract, the payment is guaranteed to be payed to the beneficiaries designated in the policy. If the insured is alive by the end of the contract, this is terminated without any compensation payment by the company.

Whole Life Insurance

If the insured is alive by the end of the contract, the corresponding payment is guaranteed to be paid to the named insured. Universal Life would fall into this category.

Universal Life Insurance

Just as with whole life insurance, individual universal life insurance protects you for life. Universal life insurance, however, offers the flexibility to adjust your premium and your death benefits.

Contact Your Alabama Life Insurance Agent 

The first and most important step you need to take when deciding to apply for a life insurance policy is to contact Calhoun and Coosa Insurance Agencies for multiple life insurance quotes. They will assist you in deciding which policy is the best for you, your family, and your purposes. 

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