Life Insurance is a contract between the Insured (the policyholder) and the Insurance Company. The Insurance Company promises to pay the death benefit to the Insured’s beneficiary in case of demise of the Insured in exchange for timely premium paid by the Insured.
Types of Life Insurance
- Term Life Insurance: Provides coverage for a set period (10, 20, or 30 years)
- Whole Life Insurance: Covers you for your entire life with a savings component
- Universal Life Insurance: Flexible premiums and death benefits
How Much Life Insurance Do You Need?
The amount of life insurance you need depends on factors like your income, debts, living expenses, and future financial goals for your beneficiaries. A common rule of thumb is 10-12 times your annual income.
Benefits of Life Insurance
- Financial security for your loved ones
- Pay off debts and final expenses
- Replace lost income
- Fund children’s education
- Leave a legacy