What is life insurance?
Life insurance provides whomever you choose with a one-time, tax-free payment when you die, as long as you continue to pay your premiums.There are different types of life insurance, and different ways to make it work for you. It’s not only to protect your family. It can also be part of your financial plan, so you may be able to access money in your policy while you’re alive.
What kind of life insurance is available?
There are 2 basic types of life insurance coverage: term and permanent. Each has unique features designed to meet different needs.
Permanent insurance
Lifetime coverage
Higher cost
Flexible payments
Opportunity to build cash value
Term insurance
Temporary coverage
Lower cost
Fixed payments
Option to convert to permanent
How much insurance coverage do you need?
Ideally, you want to make sure your debts are covered, so you don’t leave major expenses behind for your loved ones.
Here are a few things to consider:
- Your income
- Net worth
- Family needs
- Debt
- Other insurance you have
