Life Insurance: What Is It, What Can It Do For You

By definition, life insurance is a legally binding contract between an insurer and a policyholder that pays out a set amount of money generally after the insured person’s death or sometimes after a set period. It may sound a bit morbid, but it’s really necessary if you have people you want to take care of after you’re gone. 

All You Need to Know

While life insurance guarantees a death benefit to the policy owner upon the death of the insured person, in order for the policy to remain in force, a single premium must be paid by the policyholder either upfront or in regular premiums over time. Upon the policyholder’s death, the named beneficiaries of the policy will receive said policy’s face value. This is known as a death benefit. In the event that the issuer can’t pay the claim, state guaranty funds may pay it off.

Term Life Insurance and Permanent Life Insurance Policies

Term life insurance policies are expected to expire after a set number of years. Permanent life insurance policies, as the name suggests, remain active until the insured person either ceases to pay the premiums, dies, or surrenders the policy.

Contact Bajorek Agency Inc. Serving Rochester, NY

Purchasing a life insurance policy may seem difficult, but it shouldn’t be with the wrong company. If you live in the Rochester, NY area and are looking to purchase life insurance, don’t hesitate to contact Bajorek Agency Inc. Our proficient and helpful agents will do all they can to help you get the right policy.