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Life insurance. It’s the kind of thing that no one wants to talk about, yet everyone needs to think about. That’s partly because, in many ways, talking about life insurance is talking about our own mortality. And that makes most people a bit uncomfortable.

However, making sure your family is financially secure when you pass away is one of the most important benefits of obtaining a life insurance policy, but there are many other benefits that matter, too.

Did you know you can make money off your life insurance policy? Or that you might have to have blood work done to secure one? There are many particulars to plot, plan and process when setting up life insurance. Let’s take a look at some of the details you should understand when thinking about life insurance.

Cover your end-of-life arrangements

A life insurance policy can help make sure that your family isn’t burdened with funeral costs due to an unexpected death. It can also help balance any medical costs that your family might be facing. This is also a way to document your preferences for final wishes. It’s important you let your family know your thoughts on things like burial and cremation, DNR (do not resuscitate) orders, and religious elements to be included or avoided.

Know what happens when you apply

Your life insurance premiums are based, for the most part, on the status of your health. The younger and healthier you are the lower your premiums. While you will be asked questions about your health and habits, it’s more likely that a nurse will come to your work or home to conduct a physical. He or she will take your blood pressure, measure your height and weight, and draw blood. The insurance company will likely test your blood for things like cholesterol, glucose, BMI, and tobacco and drug use, all of which helps them determine the correct rate for your policy.

Take advantage of other benefits on your policy

Coverage in the event of your death is important, but could be a long way away. Until that time comes, a life insurance policy can be very helpful to the living. For example, you can sell a life insurance policy in order to add to your retirement funds or pay for medical expenses. Not only can give this give you a nice lump sum of cash in hand, which is especially useful when you need to cover medical bills, but you’ll also be able to save each month by not paying the premium. If you want to know more benefits of your life insurance policy, you should talk with your financial advisor. The same benefits may not impact everyone the same way, so it is important you get an assessment that applies to you specific situation.

Understand the three major types of life insurance

There are more than a dozen different kinds of life insurance coverage, but three categories tend to be most popular: term, whole life and universal. Term life insurance policies only last for a certain amount of time. For example, if you have a 30-year term policy, then your benefit will only be applied if you die within that 30 years. Whole life insurance covers your death for your entire life, but you must be sure to pay your premiums on time. Universal insurance is similar to whole life, but these policies have more flexibility in relation to the death benefit and premium.

There are a lot of good reasons why a life insurance policy benefits the living, but none quite like peace of mind. You can let go of a lot of anxiety and fear when you know you don’t have to worry about your family after you die. Putting a plan in place that includes life insurance can do a lot to make your end of life more comfortable for you and your family.

This is a guest article written by Jim McKinley from |