What is Life Insurance?
Life insurance is a financial protection tool that provides a tax-free lump sum payment—called a death benefit—to your beneficiaries if you pass away. It helps ensure your loved ones are financially supported during a difficult time.
Why Life Insurance Matters
Protects Your Family’s Future: Helps cover living expenses, mortgage payments, education costs, and more.
Replaces Lost Income: Provides financial stability if the primary earner passes away.
Covers Final Expenses: Helps with funeral costs, medical bills, and other debts.
Peace of Mind: Knowing your family will be taken care of, no matter what.
Types of Life Insurance
Term Life Insurance
- Coverage for a specific period (10, 20, or 30 years)
- Typically the most affordable option
- Ideal for temporary needs, like covering a mortgage or raising children
Whole Life Insurance
- Lifelong coverage
- Includes a cash value component that grows over time
- Premiums are usually fixed
- More expensive, but offers stability and savings potential
Universal Life Insurance
- Flexible coverage and premiums
- Includes a cash value component that earns interest
- Can be adjusted to meet changing financial needs
Indexed Universal LIfe (IUL)
- A type of universal life that earns interest based on the performance of a stock market index (like the S&P 500)
- Upside potential with downside protection (your cash value won't decrease due to market losses)
- Tax-deferred cash value growth
- Offers flexibility and a way to build wealth alongside life insurance coverage
- Popular for supplemental retirement income, estate planning, and tax-advantaged savings
Final Expense Insurance (also called Burial Insurance)
- Smaller policy amounts (usually $5,000–$25,000)
- Designed to cover funeral costs and small debts
- Often easier to qualify for, even with health issues