How it works is you choose the amount of coverage you need, anywhere from $10,000 to help cover final expenses up to $10 Million or more depending on the financial needs of your family and your estate.
You choose the person or people who will receive the proceeds of your policy, known as your beneficiaries. Your beneficiary (ies) is typically your spouse, your children, or your parents, but it can be anyone that has a financial dependency on you or that you have a close relationship with. Your beneficiary can also be your company, your business partner, or if you want to leave a lasting legacy your beneficiary can be a charity.
So it’s that simple, a life insurance policy in it’s simplest form pays out a tax free lump sum benefit to your beneficiaries when you pass away.