What Does a Life Insurance Policy Cover?

We understand that life insurance can be difficult to navigate, especially if this is your first time getting a policy. At Goal Insurance, we’re here to offer guidance on what life insurance covers and why it is necessary.

How Life Insurance Payouts Are Used

The death benefit is a lump-sum payment made to your beneficiaries when you die, as long as the policy is in force. Your beneficiaries can generally use this money however they need, but common uses include everyday living expenses, replacing lost income, childcare and education costs, and long-term financial goals.

Life insurance can also help your loved ones handle funeral and burial or cremation costs, and outstanding debts or medical bills. Your payout may also be used to cover estate settlement costs, provide business continuity and equalize inheritance among your heirs.

What Your Policy May Not Cover

Your policy may not pay out if:

• The policy has expired or lapsed due to nonpayment of premiums
• Certain excluded causes of death apply (for example, some policies limit coverage for suicide within the first two years)
• There was fraud or misrepresentation on the application

Why Is Life Insurance Important?

Aside from the benefits listed above, life insurance can be one of the simplest ways to safeguard the people you love from financial stress when you’re no longer around to help. Even if it’s not legally required, your policy can help your beneficiaries reduce the financial burden of ongoing expenses without going into unnecessary debt.

How Can Goal Insurance Help You?

Our agents can help you understand life insurance and how it can benefit you and your loved ones. We’ll assess your needs and recommend coverage that best suits your circumstances and plans. Contact our team today for a personalized quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.