Life Insurance Basics

Life insurance is a topic of many conversations, but not everyone understands it. At Hudson Valley Insurance, we know that you want to protect your family, so we put together this quick guide to help our Stony Point, NY family and friends understand the basics of life insurance.

Benefits of Having Life Insurance

The type of life insurance and the amount of coverage you have will affect the benefits you receive, but some benefits include:

  • Paying for burial and any final expenses so that your loved ones do not have to.
  • Replacing your income in the event of your death, especially helpful if you have a spouse or children.
  • Paying off your mortgage. Many people obtain insurance mostly or even for the sole purpose of helping their spouse pay off a mortgage so that the family does not lose their home.

Main Types of Life Insurance

There are two basic types of life insurance: permanent life and term life. Permanent life insurance, or whole life, provides coverage for your entire life as long as you have paid your premiums.

Term life provides coverage for a set period, such as 30 years. Term life is popular among those who want to ensure their family can pay off the mortgage.

Qualifying for Life Insurance

In order to qualify for life insurance, you will either need to answer questions about your health or have a physical done, depending on the type of policy. Simplified issue policies will only require you to answer questions while a fully underwritten policy requires lab work and a physical.

Determining Coverage and Premiums

Your health is an important factor in determining the amount of coverage you need and your premiums, but there are other factors, too:

  • Lifestyle, such as drinking, smoking, and participating in risky activities
  • Marital Status
  • Gender
  • Family Medical History
  • Even the location you live can have a bearing on your premiums and coverage.

When you are ready to obtain life insurance coverage in Stony Point, NY, or if you have any questions, stop by Hudson Valley Insurance or give us a call!