What is Life Insurance?
Life insurance is a contract between an individual and an insurance company.
The individual pays premiums (monthly/semi/annual payments) in exchange for
a benefit that is paid out to their designated beneficiaries
in the event of their demise.
The purpose of life insurance is to provide financial protection for an
individual’s loved ones in the event of their passing.
There are two major types life insurance:
Term and Permanent.
Term life insurance provides coverage for a specified period of time, usually ranging from 10 to 30 years.
Permanent life insurance provides coverage for the remainder of the policyholder’s life.
Unlike term, permanent life policies often have an investment component
that can accumulate an accessible cash value over time.
Life insurance can be customized to fit an individual’s specific needs and goals. For example:
One can choose the amount of coverage they want, the length of the policy,
and can add riders to their policy for additional coverage. Riders are optional features or benefits that you can add to your life insurance policy for an additional cost.
Life insurance can play a crucial role in estate planning by helping to ensure
that an individual’s assets are distributed according to their wishes,
and can help to cover outstanding debts and final expenses.
It’s important to consider the various life insurance options available,
and it’s often not an easy choice to make.
That’s why I’m here!
Here, you can gather some basic facts about each type of policy,
then click to learn more about the one that interests you most!
