Life insurance is something that anyone can benefit from and that many families could use when they lose a loved one. Unless you have a policy however, your family is not going to be able to benefit from this type of protection. For those that live in the Edina, MN area, the agents with Central Lakes Insurance Brokers can help you find the right policy for you and can tell you just what it covers.
When most people hear the words life insurance they immediately assume that these funds cover only funeral expenses. This is not the case, however. Unless you buy funeral insurance that is only for funerals, life insurance can cover anything you deem fit. Life insurance works in a simple way, the policyholder pays the premiums until the policy either matures as with term insurance, or until the time of their death as with whole life insurance. The money is then paid out to the beneficiary after death has been affirmed and the proper forms and death certificates have been filed.
In most cases, unless otherwise specified, the money comes to the beneficiary in the form of a check that they can then cash, deposit, save and do whatever they want to do with it. In most cases, if the death was sudden or previous arrangements had not been made, beneficiaries will pay the funeral expenses out of the life insurance balance. Life insurance is to be spent and used at the discretion of the beneficiary and is meant to help ease the transition of life with the policyholder to life without the policyholder.
For those that live in the Edina, MN area, the agents with Central Lakes Insurance Brokers can help you to get the policy you need and the amount of coverage you need as well.
If you own your own company, you can use life insurance as an essential tool in your personal and business planning. Life insurance helps you ensure the overall stability of your company in Brainerd or Edina, MN. You’ve poured your heart and soul into your enterprise and, especially if you have partners, you want to make sure you’re covered if tragedy strikes. Ask your Central Lakes Insurance Brokers for more information on the type of life insurance that would work for you. Meanwhile, here’s some information that will help you prepare to decide on the type of life insurance policy you need.
Using Life Insurance to Protect Your Business Assets
When you set up arrangements to protect your business with a life insurance policy, there are many ways you can accomplish this. The most often used is the buy or sell agreements. Ask your agent to outline the types of plans available and which is best for your business.
Buy and Sell Agreements
A buy and sell agreement applies to two or more partners in a business. If one of the owners passes away, it could put the company at significant risk or even cause the business to go under. When the owners sign a buy and sell agreement, they can use a life insurance policy to fund the agreement. In this case, each owner gets a life insurance policy that pays out to the other owner in the case of an unexpected death.
Here, each of the business owners purchases a life insurance policy on the other. Then, if one of the owners passes away unexpectedly, their life insurance coverage gives the other partner(s) the money to purchase the deceased owner’s interest in the company. Some of the proceeds could also go to the deceased owner’s family for final expenses or to pay for living expenses for their survivors. However, the business ownership reverts to the surviving partner.
Contact your Central Lakes Insurance Brokers in Edina, MN to find out how to protect your business and your family with customized life insurance policies.