Life’s Unpredictable, Your Protection Isn’t. Trust in Tomorrow, Insured Today.
Let us help you to decide the right life insurance
What is Life insurance?
The primary purpose of life insurance is to provide a death benefit to the beneficiaries named in the policy upon the death of the insured. The death benefit is typically a lump sum payment that can be used by the beneficiaries to cover various financial needs, such as funeral expenses, outstanding debts, or ongoing living expenses.
There are several types of life insurance policies available in the USA, and they can generally be categorized into two main types: term life insurance and permanent life insurance.
Term Life Insurance:
- Coverage Period: Term life insurance provides coverage for a specific period, such as 10, 20, or 30 years.
- Premiums: Premiums are generally lower compared to permanent life insurance, especially for younger and healthier individuals.
- No Cash Value: Term life insurance typically does not accumulate cash value over time. If the policyholder outlives the term, there is no payout, and the coverage ends.
Permanent Life Insurance:
- Coverage for Life: Permanent life insurance provides coverage for the entire lifetime of the insured.
- Cash Value: These policies often have a cash value component that grows over time. Policyholders can sometimes access this cash value through loans or withdrawals.
- Premiums: Premiums are usually higher than term life insurance but remain level throughout the policyholder’s life.
- Types of Permanent Life Insurance:
- Whole Life Insurance: Provides a guaranteed death benefit and builds cash value at a fixed interest rate.
- Universal Life Insurance: Offers more flexibility in premium payments and death benefits, allowing policyholders to adjust these aspects within certain limits.
- Variable Life Insurance: Allows policyholders to invest the cash value in various investment options, with the death benefit and cash value fluctuating based on the performance of the investments.
Life insurance can serve various purposes, such as income replacement, debt repayment, estate planning, or providing for the financial needs of dependents. Individuals often choose a life insurance policy based on their specific financial goals, budget, and preferences. It’s essential to carefully review and understand the terms and features of each type of policy before making a decision.