Term Life Insurance Basics,Life Insurance policy

Life Insurance policy

Protect your loved ones when the unexpected may happen.
It is never too early to plan.

What is life insurance Policy?

Simply put, life insurance is a legal contract between a policy holder and an insurance company, where the company agrees to pay out a stated amount to a beneficiary in the event of the policy holder’s death.

A life insurance contract outlines how much money the insurance company will pay out to your loved ones upon your death, how much you will pay each month as a premium, and the period of time the insurance policy will cover you. The more years you want the insurance to cover you and the more money your loved ones get, the higher your premiums will be.

Life insurance comes in varying forms including whole life and term life. To get information on the difference between the two, see term life vs. whole life insurance.

Who needs life insurance Policy?

Whether you are just starting out or planning for retirement, every individual should take the time to think about what would happen to their loved ones if they died. Would their spouse have enough money to pay off family debts and loans? Would their children be able to afford college? If the answer is “no” then life insurance is the key to your family’s future financial security.

When thinking about how much life insurance you need, take stock of your existing financial obligations to calculate the amount it would take to pay off these debts. Everyone should have enough insurance to cover funeral expenses, outstanding mortgage payments, credit cards, and car loans, with enough remaining to provide a comfortable income for your spouse and four years of tuition for each child.

Term life insurance is a great solution for young families, new homeowners, or people who have other outstanding financial obligations because it offers the lowest premiums with the biggest payout during your coverage period. It is the simplest type of life insurance on the market, providing coverage for a specified period and offering death benefits only, and is designed to carry you through key life events when you and your family need the most protection at an affordable price.