What is Life Insurance?

Life insurance is a financial product that provides a lump sum payment or regular income to your beneficiaries upon your death. It helps protect your loved ones from financial hardship by replacing lost income and covering expenses such as mortgages, debts, education costs, and daily living expenses.

Types of Life Insurance

• Term Life Insurance: Provides coverage for a specified period (e.g., 10, 20, 30 years). It pays a death benefit if the insured dies within the term and is generally more affordable.
• Whole Life Insurance: A permanent policy that provides lifelong coverage and includes a cash value component that grows over time.
• Universal Life Insurance: Flexible permanent insurance with adjustable premiums and death benefits, plus a cash value account.
• Variable Life Insurance: Offers investment options for the cash value, allowing potential growth but with higher risk.

Benefits of Life Insurance

Life insurance ensures financial security for your dependents, helping them maintain their standard of living after your passing. It can cover debts, funeral costs, and future expenses. Some policies also accumulate cash value, which can be borrowed against or withdrawn.

How Premiums are Calculated

Premiums depend on factors such as age, health, lifestyle, coverage amount, and policy type. Younger, healthier individuals typically pay lower premiums. Some policies require medical exams; others offer simplified underwriting.

Choosing the Right Life Insurance

• Assess your financial goals and needs.
• Consider the length and amount of coverage required.
• Evaluate term versus permanent policies based on budget and objectives.
• Compare quotes from multiple providers.
• Consult a licensed insurance agent for personalized advice.

Important Considerations

Review policy terms carefully, including exclusions and riders (optional add-ons). Keep your beneficiaries updated, and regularly review your coverage as life circumstances change, such as marriage, children, or purchasing a home.