What is Life Insurance?

Life insurance provides financial protection to your beneficiaries in the event of your death. It helps ensure your loved ones are financially secure, can cover funeral expenses, replace lost income, pay off debts, or fund future expenses like college tuition.

Key Benefits

  • Financial security for your family after your death
  • Tax-free death benefits in most cases
  • Can help cover mortgage payments and other debts
  • Peace of mind knowing your loved ones are protected
  • Potential cash value growth in permanent policies

Coverage Options

Term Life Insurance

Provides coverage for a specific time period (10-30 years) with lower premiums. Ideal for those seeking affordable protection during their working years or until major financial obligations are met.

Whole Life Insurance

Permanent coverage with fixed premiums and a cash value component that grows over time. Provides lifetime protection with steady, guaranteed growth.

Universal Life Insurance

Flexible permanent coverage that allows you to adjust premiums and death benefits as needed. Features a cash value component that can grow based on market interest rates.

Variable Life Insurance

Permanent coverage with investment options where cash value can be invested in various sub-accounts similar to mutual funds, potentially offering higher returns but with greater risk.

Frequently Asked Questions

How much life insurance do I need?

A common rule of thumb is 10-15 times your annual income, but your exact needs depend on your financial situation, outstanding debts, future financial obligations, and how many people depend on your income.

When should I get life insurance?

The best time to get life insurance is typically when you have dependents or financial obligations that would need to be covered in the event of your death. Buying earlier in life usually results in lower premiums.

Are life insurance benefits taxable?

In most cases, life insurance death benefits are paid tax-free to beneficiaries. However, interest earned on benefits or certain situations involving estate taxes may create tax liability.

Can I have multiple life insurance policies?

Yes, you can own multiple life insurance policies from different insurers. This strategy can help layer coverage for different financial needs and time periods.