The most common way to think of "life" insurance is to think of it as providing coverage for everything in your life. In the event that you pass away, a McAllen life insurance policy will take care of your loved ones, bills, estate, and anything else you may own as long as it is covered in the insurance plan.
You might think that this would be referred to as "death" insurance since the coverage kicks in after you pass away, but it does not work that way. There is, however, a separate form of insurance that is called "accidental death and dismemberment insurance." Both are insurance plans that kick into action when someone passes, but they are used in completely separate ways.
About Life Insurance
Life insurance premiums are paid for by the owner, but who actually gets the money at the end is the beneficiary. The owner will make payments to an insurance company, and when they pass away in the future, that company will pay the beneficiary a lump-sum amount of money. There are a variety of different life insurance policies that can be purchased.
First, there is term insurance, which is for a set amount of years. Premiums will be set for that time and increase if the owner wishes to continue once the term is up. Second, there is universal insurance that allows premiums to be changed throughout the years. This type is good for building wealth and will provide death benefit coverage that is guaranteed. Third is whole life insurance. This type is very similar to universal, except that premiums are fixed and cannot be changed when the owner wants.
Regardless, life insurance is a good way of preserving wealth no matter which type you have.
About Accidental Death and Dismemberment Insurance
Accidental death and dismemberment insurance is paid either to a beneficiary or even oneself. If an accidental death occurs, the beneficiary will be paid from the insurance company that the owner was paying. If dismemberment occurs, the owner would be given the money to use for medical payments and other necessary things.
Accidental death includes death from events such as car accidents or being hit by a car. The money is only awarded if the death occurred directly because of the accident that happened. Situations that you choose to partake in that may cause an accident, such as skydiving, are not covered. Just like death during surgery is not covered.
Give Raymond Longoria Insurance a call today at 888-296-0345 and we will help you determine which policy is right for you.
Although many people feel that coverage for accidental death and dismemberment is necessary, it may really not be. Typical life insurance policies often cover the same types of things, plus more. The policies need to be looked into completely to see which types of situations are covered, and whether or not a second policy is needed.