Life insurance offers financial security for your loved ones by providing a death benefit in case of your passing.
There are two primary types: term life insurance and permanent life insurance (lifelong coverage).
The death benefit is the payout to beneficiaries upon the insured's death. It can cover expenses like debts, mortgages, and future financial needs.
Permanent life insurance policies can accumulate cash value over time, which can be borrowed against or withdrawn.
Premiums are the regular payments you make to maintain your life insurance coverage. They can be fixed or flexible, depending on the policy type.
Insurance companies assess your health and lifestyle during the underwriting process to determine your insurability and premium rates.
You name beneficiaries in your policy who will receive the death benefit upon your passing. Beneficiaries can be individuals or entities.
Riders are optional add-ons that customize your policy. They can provide additional coverage for specific needs, such as critical illness or disability.
Life insurance can be a valuable tool in estate planning, helping beneficiaries manage inheritance taxes and other financial matters.
People buy life insurance for various reasons, including income replacement, debt coverage, education funding, and legacy planning.
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