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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:
Insured – This refers to the person(s) (or sometimes an organization or entity)
that an insurance policy provides coverage for. For example, if you have an auto insurance policy, you are considered to be the insured in that contract.
Beneficiary – A beneficiary is a person who is designated as the recipient of payment of a life insurance benefit.
Premium – This is the amount of money you, the insured, pay to an insurance
company in exchange for coverage. Depending on the policy, your premium can be paid in different ways, such as monthly payments or a single upfront payment. Don’t forget that the higher the premium, the higher your coverage.
Death Benefit – A death benefit is a sum of money paid out to the beneficiary or beneficiaries of a life insurance policy. A death benefit is the primary purpose of buying life insurance coverage.
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.
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 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.