Individuals who want to protect and provide for their loved ones in life as well as in death typically consider purchasing a life insurance policy. In simple terms, life insurance is a type of contract between you and an insurance company. In exchange for monthly payments, the insurer will provide a settlement to your loved ones upon your passing. Life insurance can be a good idea for families where the loss of a loved one’s income would cause financial hardship. However, even if your family does not depend on your earnings, they might still be left with considerable expenses when you pass away, such as funeral costs, medical expenses, and other end-of-life costs. Learn more about how life insurance works, whether it would be a financially prudent decision for you and your family, and how an experienced life insurance attorney can help.
Understanding Life Insurance Terms
Taking out life insurance can seem complicated when you are faced with making decisions and filling out policy documents for the first time. Knowing the following terms may prove useful as you begin the life insurance process.
- Premiums are your monthly payments to the insurance company
- Beneficiaries are those persons due to receive a settlement when the policyholder passes away.
- The death benefit is the sum any beneficiaries receive when the policyholder dies.
How Can Life Insurance Benefit My Family?
Life insurance can potentially cover various financial losses and responsibilities your loved ones might have after you pass away. Benefits will depend on your policy and the amount of coverage. Life insurance can include help with:
- Income replacement of the person who passed away
- Paying for funeral costs
- Paying off a mortgage
- Paying off car loans, student debt, and other loans
- Providing college funds for your children
Having adequate life insurance coverage in place can also help with other financial obligations such as caring for aging parents or looking after family members with special needs.
Indirect Benefits of Life Insurance Policies
Indirect benefits from life insurance can prove beneficial also. The death benefit is typically tax-free for beneficiaries. Some insurance policies will also allow the policyholder to accumulate cash benefits that they could use for retirement or pay premiums. In short, life insurance can provide you and your family with peace of mind and an additional financial security net.
What Are the Life Insurance Protections Under Louisiana Law?
In Louisiana, life insurance beneficiaries also enjoy certain protections by law. According to Louisiana Revised Statute § 22: 1973, insurance companies have the legal requirement to act in good faith when settling claims. However, insurance companies may still try to deny or reduce claims. Under Louisiana law, insurance companies are liable for penalties and attorney’s fees for bad faith behavior. When this happens, beneficiaries should contact an experienced Louisiana life insurance attorney at New Orleans Legal, LLC, who can help determine whether your insurance company acted unreasonably or in bad faith.
How Do I Get Life Insurance?
Before selecting a life insurance policy, you should consider the various options. There are a number of different types of life insurance policies available in Louisiana with some suiting families, while others are better suited for couples or individuals at high-risk. Before applying for life insurance, you should make sure that your policy suits your individual circumstances.
Choosing a Life Insurance Company
Choosing a life insurance company can be just as important as selecting the right policy. According to the Insurance Information Institute (III), there are about 1,000 life insurance companies in the United States. You should make sure that the insurance company you are considering is licensed in Louisiana as you could then receive assistance from the state insurance department if you run into any problems with the insurer.
How a Life Insurance Attorney Can Help Families
Once you have decided on a certain type of life insurance and company, the process of applying is fairly straightforward. The application for life insurance usually consists of filling in the relevant documentation and taking a medical test. However, consider consulting with a trusted New Orleans life insurance attorney when it comes to acquiring and setting up life insurance. New Orleans Legal, LLC, can help to avoid pitfalls and ensure that your policy protects your loved ones adequately, and according to your wishes.
Call New Orleans Legal Today
In theory, setting up a life insurance policy and claiming benefits should be straightforward. In the first instance, you apply and pay the premiums. Upon your passing, any beneficiaries should receive a settlement according to your life insurance policy. However, in practice, your beneficiaries might struggle to receive their due. In the worst-case scenario, a policyholder paid a premium for many years only for their hard-earned money to end up in limbo or in the hands of the insurance company. We at New Orleans Legal, LLC believe that this is wrong, and are determined to fight aggressively for the rights of policyholders and beneficiaries.
Knowing the right steps to take and how to apply for the right life insurance is crucial for maximizing your loved one’s benefits. Experienced New Orleans life insurance attorney Peter Diiorio at New Orleans Legal, LLC is committed to helping you and your family with all life insurance issues. We want to prevent you and your loved ones from missing out on any benefits.
If you are struggling to choose a life insurance policy or with receiving your benefits, contact us at (504) 897-5580 now for a free consultation.