A Basic overview of Life Insurance
Life insurance is a type of insurance that provides financial protection for the policyholder's beneficiaries in the event of their death. It is designed to help replace the policyholder's income and cover expenses such as mortgage payments, funeral costs, and living expenses. There are two main types of life insurance: term life insurance and permanent life insurance.
Term life insurance provides coverage for a specific period, typically 10-30 years. If the policyholder dies during the term of the policy, their beneficiaries receive a death benefit payout. However, if the policyholder outlives the term of the policy, the coverage expires, and there is no payout.
Permanent life insurance provides coverage for the policyholder's entire life, as long as the premiums are paid. Some Permanent life insurance policies even accumulate a cash value over time, which can be borrowed against or withdrawn. There are several types of permanent life insurance, including whole life insurance, universal life insurance, and variable life insurance.
When choosing a life insurance policy, it's important to consider factors such as the amount of coverage needed, the length of coverage needed, and the cost of the policy. The policyholder's age, health, and lifestyle may also affect the cost of the policy.
Life insurance can provide peace of mind and financial security for the policyholder's beneficiaries in the event of their death. When considering life insurance, it's important to carefully evaluate different policy options and consult with one of licensed insurance agents.
Carli Trego Carli@philipbakerinsurance.com
Philip Baker Phil@phlipbakerinsurance.com