WHAT IS LIFE INSURANCE, AND WHY DO I NEED IT?

Life insurance is a financial product that provides a lump sum payment, known as a death benefit, to designated beneficiaries upon the insured’s death. It helps protect your loved ones financially by covering expenses such as mortgages, debts, and living costs in the event of your passing.

HOW MUCH LIFE INSURANCE COVERAGE DO I NEED?

The amount of coverage you need depends on factors such as your income, debts, lifestyle, and future financial obligations. A general guideline is to aim for coverage that is 5-10 times your annual income, but it’s essential to assess your specific needs with a financial advisor.

CAN I CHANGE MY LIFE INSURANCE POLICY AFTER PURCHASING IT?

Yes, many policies offer flexibility and options for changes. You may be able to adjust coverage amounts, change beneficiaries, or convert a term policy to a permanent policy. It’s important to review your policy regularly and discuss any changes with your insurance provider to ensure it continues to meet your needs.

HOW ARE LIFE INSURANCE PREMIUMS DETERMINED?

Premiums are based on factors such as your age, health, lifestyle, occupation, and the type and amount of coverage you choose. Younger and healthier individuals typically pay lower premiums, while those with higher risks may pay more.

THERE ARE SEVERAL TYPES OF LIFE INSURANCE POLICIES, WHICH ONE IS RIGHT FOR YOU?

Term life, whole life, and universal life. Term life offers coverage for a specific period, while whole life provides lifelong coverage with a cash value component. Universal life combines flexible premiums with an investment component. The right policy for you depends on your goals, budget, and preferences.