Life Insurance Defined

Life insurance is an important part of a complete financial portfolio. Learning basic life insurance facts will help you make an informed decision about the type and the amount of life insurance that you need.

When you buy life insurance, you enter into a contract with an insurance company that promises to provide your beneficiaries with a certain amount of money upon your death. In return, you make periodic payments, called premiums. The premium amount is based on factors such as your age, gender, medical history, and the dollar amount of life insurance you purchase.

In the event of your passing, life insurance provides money directly to your beneficiaries. They can use the money for whatever they want, such as:

* Making up for your lost income

* Funding a child’s education

* Paying off household debt

* Paying for your funeral and other related expenses

Certain types of life insurance may provide benefits for you and your family while you’re still living. For example, permanent life insurance offers a cash value component, which can be put to good use during your lifetime.

Life insurance is essential to all good planning—whether it be to protect your family against a sudden loss of income, insure a key company employee or plan your estate. We have developed a variety of products to meet your specific needs and your financial situation.

A life insurance policy pays a cash benefit, tax free, to your beneficiaries when you die. The amount of money for which you are insured and the type of insurance you buy depends on your needs. People can get life insurance through work (some employers offer it through group benefits plans. This type usually ends when you leave the employer.) or they buy it on their own (usually from an insurance advisor). There are 3 types of life insurance: term, permanent and universal.