LIFE INSURANCE

Understanding Life Insurance: What You Need to Know
Life insurance isn’t just for peace of mind—it’s a smart way to protect your family’s future, cover final expenses, and even build long-term financial security.
Here’s what to look for when choosing the right life insurance policy for you and your loved ones:
 

1. Term Life Insurance
This offers coverage for a set period (10, 20, or 30 years). It’s generally more affordable and ideal if you want protection during your working years or while raising a family.
 

2. Whole Life Insurance
A permanent policy that lasts your entire life and builds cash value over time. Premiums are typically higher but stay the same, and the policy can be used as a financial asset.
 

3. Universal Life Insurance
Offers lifelong coverage with flexible premiums and adjustable benefits. It also includes a cash value component that grows based on interest rates or market performance.
 

4. Final Expense Insurance (Burial Insurance)
A simplified policy designed to cover end-of-life costs like funeral expenses, medical bills, and small debts. It’s a good option for those who don’t need large coverage amounts.
 

5. Riders & Add-Ons
Customize your policy with features like:
• Accidental death benefits
• Waiver of premium (if you become disabled)
• Child term riders for covering your kids under your policy
These extras can enhance your protection without needing a separate policy.
 

6. Beneficiaries
Designate who will receive your policy’s payout. Be specific and update this regularly—especially after major life events like marriage, divorce, or the birth of a child.
 

7. Cash Value & Loans
Permanent life insurance policies build a cash value over time, which you can borrow against. It’s important to understand how this affects your death benefit and future premiums.
 

8. Affordability & Coverage Needs
Make sure the coverage amount fits your family’s needs—think about mortgage payments, income replacement, debt, education costs, and more. Then find a monthly premium that works for your budget.