What is life insurance?
Life insurance policies help provide security for you or your beneficiaries after your death or after a designated period of time. With a life insurance policy, you can help secure your family’s financial future by paying for college, paying off a mortgage, covering any final expenses or estate taxes, and more.
Types of Life Insurance
There are two main types of life insurance: term life insurance and permanent life insurance. Term life insurance simply covers you for a specific period of time (10-, 20-, and 30-year policies are the most common). Permanent life insurance can be divided into three types: universal, whole, and variable.
Term life insurance can be used to compensate for lost income. This can provide a safety net for your family and help them reach their financial goals.
Variable life insurance offers whole life protection and an investment component similar to a mutual fund.
Long-term care (LTC) can be used to pay for potential LTC expenses and offers a death benefit.
Universal life insurance offers flexible payment options, death benefits, and cash value.