Life insurance is perhaps one of the most versatile types of coverage anyone can get. Despite this, not nearly enough people consider getting insured. This could be for a variety of reasons, but among the most common is a failure to understand exactly whom it benefits and how it can help you and your loved ones in case something tragic happens to you. That is why this detailed guide is here to provide you with the three most important things that everyone needs to know about life insurance Insurance Attorney in Miami.
It Involves 4 Groups of People
With all the legal jargon getting thrown around in a life insurance policy, it can sometimes be hard to keep up. It is important to understand that there are really only four types of individuals involved in the policy. They are the owner, the insurer, the insured, and the beneficiary.
The owner of the policy is the person tasked with paying the policy premiums to the insurance company. The insurer is the insurance company being paid and will be the one who pays out the money in the event that a claim is made. The insured is the individual that is covered under the policy and is often the same person as the owner, but not always. The beneficiary is the person or group that is set to receive the money that gets paid out in the result of a claim.
It Is Necessary for Someone With Dependents
When most people think about the term “dependents,” they tend to immediately think of children. While this is certainly the most common form of a dependent, it is not the only kind. In actuality, a dependent is anyone who relies upon you for financial stability. Whether that be a child, spouse, ex-spouse, elderly parent, or someone else, it is important to think about this when deciding on life insurance.
Having someone depend on you financially means that life insurance policy is a must. If you were to suddenly no longer be there to support them, then tragic things could happen to your loved ones. That is why it is so important that you talk to an insurance attorney in Miami and get information about setting up life insurance if you have dependents in your life.
It Is Important to Get the Right Amount
Simply having life insurance is not enough to secure the wellbeing of your loved ones after your unfortunate passing. You need to make sure that you have enough coverage, that there is no risk of being underpaid by your insurance company and having your loved ones suffer. A general rule of thumb to make sure you have enough coverage is to multiply the insured’s annual wage by 15. Then get a policy that pays out the amount in the event of their death. This is a good way to ensure your loved ones do not experience financially tough situations after you are gone.