Life Insurance
Life insurance gives your loved ones financial security after you're gone. If the unexpected happens, your loved ones get a death benefit they can use for things such as medical bills, funeral expenses, outstanding mortgage, college tuition and even living expenses.
Who Needs Life Insurance
- Parents who want to make sure their children are cared for
- Those with debts they don't want to pass on to loved ones
- People who want to lock in a lower insurance rate while they're young
- Homeowners who want to make sure their family can pay off the mortgage if they should die
- Families who rely on a stay-at-home parent
- If you have a life insurance policy through your employer, because your policy does not go with you when you switch jobs
- Entrepreneurs who want to protect their business
- Those who want to leave a legacy for their children and grandchildren
Life Insurance Options
Term Life Insurance: This coverage lasts for a "term" you choose, usually 10, 15, 20, or 30 years. During that time, your life insurance premiums are guaranteed not to increase. If you pass away during that time period, your beneficiaries get a cash death benefit. If you live longer than the term period, you have the option to continue your life insurance coverage for an annual, renewable premium, which is generally much higher. You can usually convert a term life insurance policy to a permanent life insurance policy without getting a new medical exam.
Permanent Life Insurance: There are two big ways that permanent life insurance is different from term life insurance. First, the policy is meant to last the rest of your life (as long as you make the required premium payments, of course). Second, part of the money you pay into your permanent life insurance policy is set aside in an account where it can grow cash value that you can tap into later on. There are several types of permanent life insurance, each with different advantages
