Understanding Life Insurance
Life Insurance 101:
Life insurance is a contract between an individual and an insurance company, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person. It serves as a financial safety net, providing beneficiaries with a lump sum payment, known as the death benefit, to cover expenses such as funeral costs, mortgage payments, and ongoing living expenses.
Types of Life Insurance:
Term Life Insurance:
Term life insurance provides coverage for a specific period, typically ranging from 10 to 30 years. It offers a straightforward and affordable option for individuals seeking temporary coverage to protect their loved ones during critical life stages.
Whole Life Insurance:
Whole life insurance provides lifelong coverage with a guaranteed death benefit. Additionally, it accumulates cash value over time, serving as a long-term investment vehicle that offers financial stability and flexibility.
Universal Life Insurance:
Universal Life Insurance offers both death benefit coverage and a cash value component, with flexibility in premium payments and death benefit options. It provides policyholders with the ability to adjust coverage and premiums to suit their evolving needs.