Life Insurance

There are many kinds of life insurance, but they generally fall into two categories: term insurance and permanent insurance.

Term insurance is designed to meet temporary needs. It provides protection for a specific period of time (the "term") and generally pays a benefit only if you die during the term. This type of insurance often makes sense when you have a need for coverage that will disappear at a specific point in time. For instance, you may decide that you only need coverage until your children graduate from college or a particular debt is paid off, such as your mortgage.

In contrast, permanent insurance provides lifelong protection. As long as you pay the premiums, and no loans, withdrawals or surrenders are taken, the full face amount will be paid. Because it is designed to last a lifetime, permanent life insurance accumulates cash value and is priced for you to keep over a long period of time.

It's impossible to say which type of life insurance is better because the kind of coverage that's right for you depends on your unique circumstances and financial goals.

But remember, the best way to figure out the amount and type of life insurance that makes sense for your particular situation is to meet with a qualified and licensed life insurance professional.

What is life insurance? 
A life insurance policy is a safety net that helps ensure your loved ones’ future financial obligations are met. This can include expenses such as funeral costs, outstanding debt, estate taxes and everyday living expenses. 

What are the types of life insurance? 
There are many kinds of life insurance, but they generally fall into two categories: term insurance and permanent insurance. 

Term insurance is designed to meet temporary needs. It provides protection for a specific period of time (the “term”) and generally pays a benefit only if you die during the term. This type of insurance often makes sense when you have a need for coverage that will disappear at a specific point in time. For instance, you may decide that you only need coverage until your children graduate from college or a particular debt is paid off, such as your mortgage. 

In contrast, permanent insurance provides lifelong protection. As long as you pay the premiums, and no loans, withdrawals or surrenders are taken, the full face amount will be paid. Because it is designed to last a lifetime, permanent life insurance accumulates cash value and is priced for you to keep over a long period of time. 

It’s impossible to say which type of life insurance is better because the kind of coverage that’s right for you depends on your unique circumstances and financial goals. 

How does life insurance work? 
When you purchase a life insurance policy, you enter a contract with the insurance company. In exchange for premium payments from you, the insurer agrees to pay a death benefit to beneficiaries after your death. Payouts will be subject to the policy’s limit. Beneficiaries can typically use the death benefit however they choose.  

Get Covered Today 
The best way to figure out the amount and type of life insurance that makes sense for your situation is to meet with a qualified and licensed life insurance professional.