Colorado Life Insurance Guide

A Colorado life insurance policy is something that many CO residents hardly give a thought to until they are older. However, if you are married or you have a child or you have anyone that depends on your financially then you should almost definitely get a life insurance policy. The exception is if you have enough financial assets to cover both your burial costs and your family’s financial needs once you’re gone. Not the case for most Americans. The good news is that life insurance is one of the less complex types of insurance.

This Colorado life insurance guide will help you understand more about how life insurance works and why you need to get coverage. Here are some important points:

A. Life insurance is an insurance policy that helps take care of your family financially upon your death. In some cases a policy may also pay out in instances where you can no longer work due to illness or injury. The point of life insurance is to give your family that immediate assistance to make up for the loss of financial support or otherwise cover the related expenses after your death.

B. Life insurance is usually set up to pay out to a beneficiary. The beneficiary is a person you designate. If you designate a minor child then you would also have to make arrangements for when the policy will pay out. For example, at what age will they receive the money or who will handle it.

There are choices in policies. You can get a CO whole life policy which offers you permanent coverage as long as you pay the premiums. Usually the premiums are set. You may also have investment options that allow your policy’s value to increase. You can also borrow against some policies.

The other option is a CO term life insurance policy. This is a temporary policy with an option to renew. It offers flexibility and is for a set period of time you designate. You are not able to borrow against a term policy.