Senior Life Insurance Plans

Life Insurance: What You Need to Know

Life insurance is a contract between an individual and an insurance company. In exchange for regular payments (premiums), the insurance company agrees to pay a sum of money (the death benefit) to the policyholder’s beneficiaries upon the policyholder’s death.

There are three main types of life insurance: term life, whole life, and universal life.

Term life insurance provides coverage for a specific period of time, such as 10, 20, or 30 years. If the insured person dies during the term of the policy, the insurance company will pay the death benefit to the beneficiaries. If the insured person lives to the end of the term, the policy expires, and no benefits are paid.

Whole life insurance provides coverage for the insured person’s entire lifetime. In addition to providing death benefits, whole life insurance also accumulates cash value. The cash value can be used to pay for premiums, make withdrawals, or borrow against.

Universal life insurance is a type of permanent life insurance that gives the policyholder more flexibility in how premiums are paid and how cash value is accumulated. With universal life insurance, the policyholder can choose how much of each premium payment goes toward the death benefit and how much goes toward the cash value.

The type of life insurance that is right for you will depend on your individual needs and financial situation. If you are unsure which type of life insurance is right for you, you should speak with a financial advisor.

Here are some things to consider when choosing a life insurance policy:

• Your age and health: The younger and healthier you are, the lower your premiums will be.
• Your financial needs: How much money will your loved ones need if you die?
• Your budget: How much can you afford to pay in premiums?
• Your flexibility needs: Do you need the flexibility to change your coverage or make withdrawals from your cash value?

It is important to shop around for life insurance quotes from multiple companies before deciding. You should also make sure to read the policy carefully before signing up.