Life Insurance

Life insurance is a financial product that provides a monetary benefit to designated beneficiaries upon the death of the insured individual. It is designed to offer financial security and peace of mind, ensuring that loved ones are supported after the policyholder’s passing.

Life insurance typically falls into two main categories: term life insurance and whole life insurance. Term life insurance covers the policyholder for a specific period, usually ranging from 10 to 30 years, while whole life insurance provides coverage for the entire lifetime of the insured, accumulating cash value over time.

For example, if a 30-year-old purchases a $500,000 term life insurance policy for 20 years and passes away during that term, the beneficiaries would receive the $500,000 benefit. Conversely, if the same individual purchases a whole life policy, they would have lifelong coverage, and the policy would also build cash value that they could borrow against or withdraw in the future.

Life insurance can also serve various purposes, such as covering funeral costs, paying off debts like mortgages, providing income replacement for Dependents, or funding educational expenses for children. In some cases, it can be used as a part of estate planning to ensure that heirs receive financial support after the policyholder’s death.