A life insurance policy provides financial protection for your family in the event of your death. You make a contract with the insurance company, which pays a certain amount of money to your family upon your death. Your policy may also include features that would allow you to access a portion of the death benefit if you experience a qualifying medical condition or illness.
What protection needs does life insurance meet?
- Protect the lifestyle of your children, spouse or dependents in case of death
- Accumulate funds for education or retirement
- Gain flexibility to fund unexpected events, like critical illness or nursing home care
Life insurance is a long-term contract with an insurance company that provides a death benefit. In return, periodic premiums are paid to the insurance company. It can also be used as a means of income by the cash value feature of some types of policies.
The life insurance policy’s death benefit can fund dependents’ needs for a long time. When buying life insurance, you need to decide how much you need, how long you need it and what you can afford to pay.