What Is Life Insurance?

Life insurance is a contract between a policy holder and an insurance company, where the insurance company promises to pay a sum of money in exchange for a premium, upon the death of the insured person. This type of insurance protects your loved ones financially in the event of your death, where the named beneficiary will receive financial protection in the amount agreed upon in the policy holder’s life insurance contract.

The different types of Life Insurance are:

1. Term Life Insurance protects the policy holder for a set period: 1, 10, 15, 20, or 30 years. (Click here to learn more)

2. Permanent Life Insurance protects the policy holder for the entirety of his/her life. There are two types:

a.   Whole Life - recommended (click here to learn more)

b.   Universal Life – NOT recommended (click here to learn more)