As the name implies, term life insurance is valid for a specific number of years – usually 10, 20, or 30. If you pass away during that timeframe, your beneficiaries will be paid the death benefit you choose when opening the policy. That death benefit can be used for anything the beneficiary desires, but typically it is meant to supplement your income and provide a safety net to pay the mortgage, outstanding debts, college education for your children, and anything else you are obligated to pay.
Each year, you’ll make a premium payment that ensures the policy is valid for another year and that payment stays the same throughout the life of the policy. If the term period expires and you are still alive, you’ll likely be able to renew the life insurance policy, but at a higher rate each year. Leo Insurance Group in Las Vegas, NV can help you with any questions you may have.
Is term life insurance right for me?
To decide how much life insurance you need, there are a couple of approaches to take. First, you can simply multiply your current income by how many years you wish to replace it. For example, if your salary is $100,000 and you want to ensure 10 years of income should you pass, you’ll want to purchase a $1 million life insurance policy. Second, you can use the more comprehensive DIME method that has you add your debt, income, mortgage, and anticipated college education needs for your children together to establish a baseline amount of how much money your family will need should you pass away.
Learn more about life insurance and discover how it can be a beneficial tool for your loved ones, by reaching out to Leo Insurance Group in Las Vegas, NV. We take the time to learn about our customers personally so that we can make tailored recommendations based on need.
Buying life insurance in Las Vegas, NV means making critical life decisions such as choosing a beneficiary. If you have never sat down and thought about it, you will have difficulty filling that “required field.” You will be required to name multiple names if the primary beneficiary is unavailable to receive the death benefit. So what is the process of choosing a beneficiary? Who can you choose as your primary beneficiary? Leo Insurance Group will help answer these questions and others that you may have about beneficiaries.
Anyone Can Be Your Beneficiary
A beneficiary can be any person, institution, charity, business, or trust. If you choose a person to be your beneficiary, they can be your child, spouse, sibling, parent, friend, neighbor, or a needy person you feel deserves your wealth. There are really no restrictions to whom you can name. However, in Nevada, a rule requires your spouse to waive their rights if you decide to designate someone else as the beneficiary.
Primary and Contingent Beneficiaries
Insurance experts always recommend having at least two names when buying life insurance. The first and most important name is the primary beneficiary. This is the person who will receive the death benefit. If the person dies before you, the second name—contingent beneficiary will receive the death benefit on behalf of the primary beneficiary.
What if You Want To Have Multiple Beneficiaries?
It’s essential to be specific when choosing beneficiaries to avoid conflict with your loved ones. If you have to include all of them—let’s say ten names, make sure they are well-written and spelled correctly to avoid future problems. You also need to assign the percentage of the death benefit each will receive. Don’t forget to update these names frequently based on circumstances.
At Leo Insurance Group, we advise, guide, and take you through the entire process of acquiring life insurance. If you would like to learn more about beneficiaries, call or visit our Las Vegas, NV offices.