Life insurance can be a safe and reliable way to help protect the ones you love. It can provide your family the means to help replace lost income, cover the mortgage or rent, pay off debts or medical bills should something should happen to you.
When you purchase life insurance, you enter into a contract with a life insurance company that agrees to pay a death benefit to your spouse, children or other beneficiary you choose. In exchange, you make payments to the insurance company. These payments are also known as your premiums — and the amount is based on a variety of factors such as your age, gender, medical history and the amount of life insurance you purchase.
Whether you’re looking for first-time protection, or supplementing the life insurance that you already have, you’ll want to evaluate your needs and resources before making a purchase. There are several types of life insurance, but the two most popular categories of life insurance can be defined as term life insurance and permanent life insurance (also known as whole life). It’s important to know that you aren’t limited to one type of insurance or the other. You may find that a combination of term life insurance and whole life insurance may be the best option for you.