Life In.sur.ance
A contract between a life insurance company and a policy owner. A life insurance policy guarantees the insurer pays a sum of money to one or more named beneficiaries when the insured person dies. This money can be used to pay rent or mortgage costs, funeral and burial expenses, personal debt such as student loans or credit cards, and even, supplement lost income.
/ˈlyf in-SHUR-uhns/
Types of Life Insurance
Term Insurance
Provides coverage for a specific period, such as 10, 20, or 30 years. Once the term is over you are no longer insured.
Premiums are typically lower but may increase with age or at policy renewal.
Does not provide any investment opportunities, solely focus on providing a death benefit.
Whole Life Insurance
Provides coverage for the entire lifetime of the insured person.
Premiums are higher than term insurance but remain consistent throughout the insured's life.
Accrues a cash value that you can borrow against or withdraw while still alive.
Kids Insurance
Give your child a head start in life with insurance that not only protects their future but also helps build it. By investing in these policies, parents can ensure that their children have the resources they need to pursue higher education, start a business, or tackle any significant life endeavor.
Frequently Asked Questions
Feeling puzzled? Our advisors have the pieces for you to see the big picture.
-
How much life insurance do I need?The amount of life insurance you need depends on your individual circumstances, including your financial obligations and goals. A common rule of thumb is to have coverage equal to 5-10 times your annual income, but a more accurate assessment considers your debts, expenses, and future financial needs.
-
How do I choose the right life insurance policy?Choosing the right policy involves evaluating your financial situation, goals, and budget. Term life insurance is often more affordable, while permanent life insurance provides lifelong coverage with an investment component.
-
What factors affect life insurance premiums?Several factors influence your life insurance premiums, including: Age: Younger individuals typically pay lower premiums. Health: Your overall health and medical history play a significant role. Coverage amount: Higher coverage amounts lead to higher premiums. Smoking status: Smokers often pay higher premiums. Lifestyle: Risky hobbies or occupations may increase premiums.
-
Can I buy life insurance for someone else?Yes, you can purchase life insurance for another person, but you typically need their consent and insurable interest. Insurable interest means that you would suffer a financial loss if the insured person were to pass away. This is common in cases like spouses, children, or business partners buying life insurance on each other.
-
Can I change my life insurance policy after purchasing it?Yes, you can often make changes to your life insurance policy, such as adjusting coverage amounts, adding riders (optional policy features), or even converting a term policy to a permanent one
-
Should I get life insurance if I'm single with no dependents?Even if you're single with no dependents, life insurance can still be beneficial. It can help cover funeral expenses, outstanding debts, or leave a legacy for loved ones or charities. Additionally, purchasing life insurance when you're young and healthy can result in lower premiums.