MOST COMMON TYPES OF LIFE INSURANCE

  • Term life insurance is a type of insurance that only pays out if the insured’s death occurs during the term of the policy, which is typically between one and 30 years.
  • Permanent life insurance generally pays a death benefit whenever the insured dies. It typically will not expire unless the policy holder stops making insurance. Permanent life insurance can also have a cash value component that can be borrowed against, or the policy can be surrendered for cash.

DO I NEED LIFE INSURANCE?

Life insurance isn’t required by law, but it is recommended for most people. Life insurance can help with expenses you leave your loved ones with when you die. Consider the following scenarios:

  • Your debts may be inherited
  • Your spouse, partner, children, or other relatives depend on your income
  • Your funeral expenses would be a financial burden
  • You own a business

These are just a few cases in which life insurance can benefit those you leave behind. Even if these scenarios don’t apply to you, discussing the prospect of life insurance with those closest to you is important.

HOW MUCH DOES LIFE INSURANCE COST?

When providing you with a quote for life insurance coverage, insurers may consider the following criteria:

  • Age
  • Health conditions
  • Gender
  • Occupation
  • Lifestyle
  • Driving record
  • Tobacco use
  • Family history health
  • Criminal history

The cost depends on the type of life insurance a policyholder chooses (e.g., term life insurance, whole life insurance)

WHAT CAN A DEATH BENEFIT BE USED FOR?

  • Income replacement for dependents
  • Funeral and burial costs
  • Debts
  • Medical expenses
  • Federal and state death taxes
  • Charitable contributions
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