What is Life Insurance and How Does It Work?

Most people don’t think about life insurance until it’s too late, or perhaps they know they should have it, but have no idea how much. One may ask, what is life insurance and how does it work? Or they may not know what kind of insurance to buy or whether they can afford it. In this article, Kemper Life will explain what life insurance is, how it works, and how it benefits you.

What is life insurance?

Life insurance could be a financial “safety net” for your family. It is a contract between an insurance company and you, the policyholder, to make sure your loved ones receive money to take care of the important things when you pass away.

How does it work?

You pay a set amount of money over a period of time in exchange for a lump-sum payout awarded to who the policyholder chooses as the beneficiary on the policy when the policyholder passes. This occurs if the policy is active.

Is life insurance important?

Life insurance is extremely important because many people don’t often think about a loss in the family or how to plan for it. Lack of planning can leave your family at risk for financial hardship. That’s why you need life insurance when the inevitable happens. Life insurance can provide peace of mind so the people you love can focus on what really matters instead of worrying about money.

What types of life insurance are there?

Here are the types of life insurance Kemper Life offers and what they provide: 

Whole Life Insurance

This type of life insurance coverage can last your entire life if you pay your monthly premiums. Additionally, it can build cash value that you can access. As the individual pays their premiums on time, and throughout the life of the policy, the policy builds up cash and loan values over time. 

Other benefits:

• Premium cost does not change.
• Insurance coverage continues for your whole life after the end of your premium payment period.
• Riders (additional insurance options) could be added to your policy that may not require additional health screenings.

Term Life Insurance

Term life insurance tends to be more affordable and simpler than whole life insurance. It stays in effect for a set amount of time. For many people, this type of coverage is ideal because it is initially less expensive when compared to whole life insurance. An individual can choose to pay for coverage for a predetermined period. Coverage options range from $25,000 - $250,000. However, unlike whole life insurance, when the term period ends, the policy benefits end. As time moves forward and your needs change, you may be able to convert your term policy into whole life insurance.

Accident & Health Insurance

Accidents do happen. These policies help with the financial hit from major health events like a heart attack, cancer, or injuries from an accident. It’s that extra armor of protection for life’s unexpected occurrences.

Choose Kemper Life as your life’s safety net

Get in touch with a local Kemper Life agent. We’ll come to you to help find the right protection that fits your needs so you and your family can live your best lives without worry.

Kemper Life is the brand name for insurance products issued by subsidiary insurance companies controlled by Kemper Corporation. Each subsidiary of Kemper Corporation is solely responsible for the insurance products it underwrites and issues.
This material is for informational purposes. Consider your own financial circumstances carefully before making a decision and consult with your tax, legal, or estate planning professional.