life insurance

What is Life Insurance and Why Do You Need It?

Life insurance is a safety net for your loved ones. It provides a financial cushion when you're no longer there to provide for them. In simple terms, it's a contract where you pay a premium (a regular payment) to an insurance company, and in return, they promise to pay a sum of money (the death benefit) to your beneficiaries when you die.

Types of Life Insurance

There are two main types of life insurance:

• Term Life Insurance: This type of coverage is temporary and lasts for a specific period, such as 10, 20, or 30 years. It's generally more affordable than permanent life insurance.
• Permanent Life Insurance: This type of coverage lasts your entire life and typically includes a cash value component that grows over time. It's more expensive than term life insurance but offers lifelong protection and potential savings.

Who Needs Life Insurance?

While everyone's situation is different, here are some common reasons people choose life insurance:

• To protect your family financially: If you have dependents who rely on your income, life insurance can help replace that income and cover their expenses, such as housing, food, and education.
• To pay off debts: Life insurance can help your beneficiaries pay off your outstanding debts, such as a mortgage or loans.
• To leave a legacy: Some people use life insurance to leave a financial gift to their loved ones or to support a charity.

Choosing the Right Life Insurance Policy

Finding the right life insurance policy depends on your individual needs and financial situation. Consider factors like your age, health, income, and the amount of coverage you need. It's a good idea to speak with a licensed insurance agent who can help you assess your needs and find a policy that fits your budget and goals.