Insurance Education

What is life insurance?

If the main earner in American families dies, 70% of those families will use up their funds within months. 

Having trouble figuring out this insurance thing?

No need to waste time checking Google and later end up confused. Go ahead and grab a drink. We’ll walk you through the entire process as you enjoy yourself.

Life insurance is a promise that if something happens to you, your loved ones won't have to worry about paying big bills or debts. It's a way to leave money to your loved ones if you pass away. It's an agreement between you and a life insurance company where you pay them and they provide you with coverage. Think of it like a subscription. 

Terms to know:

What type of life insurance is right for me?

Permanent and term life insurance are the two main types of individual life insurance. When choosing between the two, consider how long you want coverage, the purpose of the coverage, and how much you want to pay. Here’s a brief overview of each to help you decide which one may be the best fit for you and your family. 

Permanent (whole or universal) life insurance

Whole life insurance is exactly what it sounds like: it is insurance that lasts for your whole life. It is called permanent life insurance for obvious reasons. Permanent or whole life insurance coverage lasts for the rest of your life until you pass away, which, spoiler alert, happens to everyone.

It has a cash value component that grows over time as you pay premiums. Permanent coverage can be at least 10 times more expensive than term, with two common types of permanent coverage being who and universal life.

Term life insurance

Term life insurance is a simple, affordable type of life insurance that covers your family for a set time – typically available in 10,15,20,25, or 30-year term lengths. With term life coverage, if you were to die during the term period, your beneficiary receives a payout (called a death benefit) that provides financial safety when your family needs it most.