Life Insurance
Definition of Life insurance:
A Life insurance contract is a financial product designed to provide a payout to beneficiaries upon the insured's death. Key aspects include:
Important:
Regularly review your insurance needs (every 2-3 years, more often if there is an increase in asset value or worth or before adding a new risk). Consulting with an agent can ensure adequate coverage tailored to your specific risks.
How does it work?
There are two types of contracts:
Term Life Insurance:
Coverage for a specific period ( 10, 20, or 30 year terms) with lower prices (premiums) and no cash value.
Permanent Life Insurance:
Includes options such as:
Whole Life: Lifetime coverage with a cash value component at fixed premiums.
Universal Life: Flexible premiums and death benefits with cash value growth.
Variable Life: Investment options that affect cash value and benefits.