
Life Insurance
Life insurance is a type of insurance policy that provides financial protection for your loved ones in the event of your passing. It is designed to help your beneficiaries cover expenses such as funeral costs, outstanding debts, and living expenses.
There are several types of life insurance policies available, each with its own benefits and costs. The two main types of life insurance are term life insurance and permanent life insurance.
Term life insurance
Provides coverage for a set period of time, typically ranging from one to 30 years. It is the most affordable type of life insurance, making it a popular choice for those who want to provide protection for their loved ones but may have a limited budget. Term life insurance pays a death benefit to your beneficiaries if you die during the term of the policy. If you outlive the policy, the coverage ends.
Permanent life insurance
Provides lifelong coverage and includes a savings component called cash value. The policyholder can borrow or withdraw funds from the cash value of the policy, making it a good choice for those who want both protection and a savings component. However, permanent life insurance is more expensive than term life insurance.