Life Insurance 101: Understanding the Benefits and Types of Coverage

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A Life insurance policy pays your designated beneficiary or beneficiaries a cash lump sum upon death. Life insurance aims to provide financial security and peace of mind to your loved ones in the event of your death.

Life Insurance Tailored For You

Life Insurance can be customized to meet your individual needs and budget. For example, you can choose the coverage you want, subject to the Insurer’s minimum, add riders to the policy, and choose whether you want a term policy or a permanent life policy.

Term Life

A Term life insurance policy provides coverage for a specified period, usually between 5 to 30 years. The term/period of protection can differ from Company to Company.

If you die during the policy term, your beneficiaries will receive the death benefit. If you do not die during the policy term, the coverage will expire, and you will not receive any benefits.

The premiums for Term Insurance are usually lower than permanent life policies, and most Term policies do not have a cash value.


Learn More about Life Insurance

Permanent Life Insurance

On the other hand, a permanent life policy offers protection for your entire life as long as you pay the premiums. There are several types of permanent life policies, such as whole-life insurance, universal life, and variable life policies. Speak to your Advisor to find out which is best suited for you.

Cash Value

Unlike term life policies, permanent life insurance has a savings component that grows over time, and you may be able to access your cash value through loans or withdrawals.

If you have a permanent life insurance with a cash value or are considering getting one, find out what are the terms and conditions of the policy for withdrawals or loans.

A Life policy can also be used to help you achieve some of your financial goals. For example, you can leave a legacy for your loved ones; it can be used as collateral to stand as security for loans and much more.


Most life insurance policies offer additional benefits as riders on the base policy. Adding a rider on a life policy is optional; however, if done, it will enhance the basic policy with additional benefits or coverage at an extra cost.

Some common examples of riders include accidental death and dismemberment, long-term care, and waiver of premium.

How Much Life Insurance Do I Need?

A Life policy is more than just a financial product. It is a statement of love and commitment to your family. As the primary breadwinner, you are responsible for ensuring your family is financially secure even in your absence.

By choosing the right life policy, you can safeguard their future and give them the peace of mind they deserve.

Imagine a scenario where you are no longer around to provide for your family. Without adequate life insurance protection, your loved ones may struggle to make ends meet and pay for essential expenses such as mortgage payments, medical bills, and college tuition.

With the right life policy, you can ensure your family will not have to endure financial hardship in your absence.

Don’t just look at life insurance quotes for the cheapest one; instead, speak to an Agent about your goals, and together both of you can come up with the best plan suited for you and your family. It’s the best way to find out how much you need.


Don’t wait until it’s too late to secure your family’s future. Take action today by speaking to a life insurance advisor and finding the right coverage for your needs.

Your loved ones deserve the peace of mind that comes with knowing that they are protected, and life insurance is the perfect way to achieve this. With a wide range of options available, it’s easy to find a policy that fits your budget and your goals.

So, don’t hesitate – contact an advisor today and start securing your family’s future!

Naming a beneficiary is as essential as owning a life policy; click here to find out why. Critical Illness Insurance is another valuable tool you should consider; click here to learn more.

Derrick Wallace

Derrick Wallace

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