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- 🔍 What Is Life Insurance?
Life insurance is a contract between you and an insurance company. You pay regular premiums, and in return, the insurer pays a lump sum (called a death benefit) to your beneficiaries if you die while the policy is active.
- 🛠️ How Life Insurance Works
Choose a Policy Type (see below)
Decide the Coverage Amount (e.g., $250,000, $1M)
Designate Beneficiaries (e.g., spouse, children)
Pay Premiums (monthly, quarterly, or annually)
Payout Upon Death — If the policy is in force when you die, your beneficiaries receive the agreed amount.
📦 Types of Life Insurance
1. Term Life Insurance
Coverage for a set period (e.g., 10, 20, 30 years)
Cheaper premiums
No payout if you outlive the term
Best for: Young families, mortgage protection
2. Whole Life Insurance
Lifetime coverage
Includes cash value that grows over time
More expensive, but builds equity
Best for: Estate planning, lifelong dependents
3. Universal Life Insurance
Flexible premiums and coverage
Also has a cash value component
Good for: People who want flexibility and investment options
4. Final Expense Insurance (aka Burial Insurance)
Small coverage amounts ($5,000–$25,000)
Designed to cover funeral and end-of-life expenses
Best for: Seniors or those wanting to spare their family funeral costs
💡 Why Get Life Insurance?
Protect your family financially
Cover debts, funeral costs, or mortgage
Replace lost income
Leave an inheritance or charitable gift
📝 Things to Consider
How much coverage do you need?
How long do you need it for?
What’s your budget?
Are you insurable (health, age, etc.)?
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