Life Insurance

Life insurance is a contract between the insured and the insurance company (insurer) whereby the insurer promises to pay a designated beneficiary a specified sum of money when the insured dies in exchange for a premium. Premiums can be paid monthly, quarterly, or annually.

Some insurance contracts allow for payment of a percentage of the face amount to the insured while the insured is alive if certain criteria are met.

Why Is Life Insurance Important?

This type of insurance coverage provides many benefits. Primarily, Life Insurance provides a death benefit which can be used to replace income upon the death of the insured. The proceeds paid as a lump-sum death benefit to the beneficiary are tax exempt. The money can be used by the beneficiary in many ways.

To provide financial protection and security to the insured family.
For everyday expenses, such as groceries, utilities, car payments, and credit card bills.
To pay medical expenses.
For mortgage payments or to pay off a mortgage.
To pay tuition, student loans, or college expenses.

Who Needs Life Insurance?

Everyone who has people depending on them for financial support needs to have life insurance. Married couples, parents, business owners, grandparents. Grandparents can give life insurance as a gift to their grandchildren.

There are 2 types of Life Insurance:

Permanent Life Insurance or Whole Life Insurance
Term Life Insurance

Permanent Life Insurance or Whole Life Insurance

Permanent Life Insurance or Whole Life Insurance provides the insured with insurance protection for their entire life. Permanent Life Insurance builds cash value accumulation that can be borrowed against the policy. The insurance company usually charges interest on the amount borrowed. The funds borrowed can be used for your children’s education, to pay off your mortgage, or to supplement retirement income. If there is any outstanding loan when the insured dies, the amount of the loan and the interest accrued on the loan are subtracted from the death benefit amount that is to be paid to the beneficiary.

Life Insurance provides security and peace of mind. A Life Insurance policy is so important; it should be a part of a sound financial plan.

Life policy provides financial security for the people you love. Term insurance Insurance is an affordable way to provide financial security for your loved ones. Most people are usually so busy tending to life’s various demands, taking care of family, career, buying a home, planning for college and often overlook the need to provide the financial security their family will need if they should die prematurely.

Term Life Insurance

Term Life Insurance provides coverage for a time period specified in the insurance policy.
Term insurance provides protection for most individuals at a lower cost. Some life insurance companies
may allow you to convert term life coverage to permanent life insurance prior to the end of the term.

Term insurance is usually sold to provide protection for the following time periods: