The Basics of Life Insurance In Maryland You Need To Know

Life Insurance Maryland

You’ve probably heard people recommend life insurance from time to time. Actually, someone in your life might be telling you to get life insurance, but you’re not quite sure what life insurance entails. This is your crash course to learn and understand the basics of life insurance and why people purchase such policies:

1. What is a life insurance policy?

Life insurance policies are purchased in order to provide benefits to beneficiaries after a person passes away. For instance, a father may purchase a life insurance policy in Maryland to provide benefit to his children whenever he may pass away. Life insurance policies are not investments because they are not risky. Life insurance policies always provide benefits to those who are deemed the beneficiaries.

2. Who should purchase a policy?

If no one relies on you financially, then a life insurance policy isn’t a necessary purchase. However, if family members or friends depend on you financially, then purchasing a life insurance policy is a smart decision. The policy will provide financial stability for dependents to pay off debt or any costs that come after death.

3. What does an insurance group consider?

Insurance groups use several factors to determine the type of life insurance policy and price to sell to an individual. Here are the factors:

-Age
-Gender
-Medical condition
-Alcohol and smoke habits
-Occupation
-Hobbies

4. Types of life insurance policies:

There are several types of policies, with the most popular being term life, permanent life, universal life, accidental death and dismemberment. Here is quick breakdown of what each is:

-Term life: typically just provide a death benefit. A premium is paid and if the policyholder dies within the period, then the benefit is provided to the beneficiaries. Designed to provide inexpensive coverage.

-Permanent life: higher premiums because these are designed to provide coverage for your entire life along with other benefits. Main feature is a cash value or savings component that grows over time. These policies may be withdrawn, invested or borrowed against during the lifetime.

-Universal life: the policyholder chooses the amount of coverage and premium and possibly the cash value built over time. This policy offers more flexibility and tailoring benefits.

Now that you’ve received a quick breakdown of life insurance, you probably have more questions or inquiries. If you’re considering life insurance in Maryland or just desire to speak to our expert insurance team, we encourage you to contact us. We look forward to helping you further understand life insurance and possibly develop a policy that is just right for you.


  • nikel

    Life insurance is very important for every one as it provide benefits to beneficiaries after a person passes away. Thanks for posting this informative post. Farmers agent provides you best Life insurance at affordable cost.

  • Norma Belton

    When you just purchase insurance, if you die before two years into your policy can they not pay out.