Life insurance made simple

The primary purpose of life insurance is to provide financial security to beneficiaries in the event of the insured person’s death. The death benefit can be used to cover various expenses, such as funeral costs, outstanding debts, mortgage payments, education expenses, or income replacement.

Term Life Insurance: Term life insurance provides coverage for a specific term, typically ranging from 5 to 30 years. If the insured person dies within the term, the death benefit is paid to the beneficiaries. Term life insurance is generally more affordable than other types of life insurance.

Whole life insurance offers coverage for the entire lifetime of the insured person, as long as the premiums are paid. It combines a death benefit with a cash value component that grows over time. Whole life insurance is typically more expensive than term life insurance but offers lifelong protection and potential cash value accumulation.

Policyholders pay regular premiums to maintain the life insurance coverage. The premium amount is based on various factors, including the insured person’s age, health condition, lifestyle, occupation, and the type and amount of coverage chosen. Premiums can be paid monthly, annually, or in other agreed-upon intervals.