The short answer is, No, you will never loose any money when buying life insurance. The policy that you buy is invested and it protects your family in case of your death. Each month you pay a certain amount of money and if you pass away, the insurance company pays that sum to your family. Life insurance is an investment that pays when someone dies. You'll receive your money - tax-free - at the end of the policy period if you don't need it right away.
Your money is never at risk when you buy life insurance. In fact most people who own life insurance can’t imagine a time when they will ever need to cash it in.
Life insurance is one of the most important investments you can make to protect your family. It's designed in such a way that families receive a guaranteed payout if you pass away.
When you purchase an insurance policy, your money is not at risk. The insurance company itself guarantees a return on your investment. If anything goes wrong, it is the company that will pay out all benefits to your beneficiaries. What happens when you invest in stocks? When you invest in bonds? Or when you buy a house? Do you expect to lose everything? Well, when it comes to life insurance that's never the case.
For a death claim to be paid, the beneficiary is required by law to make a claim on the policy within a certain time period. This time period is usually between 1 and 3 years after the member's death, depending on the type of coverage purchased. For example some policies have an elimination period of three years, which means that if no one has claimed on them within three years from the date of issue, any funds remaining in the policy are returned to the company.
Put your money to work by purchasing life insurance. You can invest in a policy and leave behind a financial legacy, while ensuring the financial well-being of your family or loved ones.
For a free evaluation of your current policy and a quote for a new policy please contact Jeremy Specht for Elkin Insurance.