What is Life Insurance?

Life insurance is a simple answer to a very difficult question: 
How will my family manage financially when I die?
Life Insurance pays cash to your loved ones after you die, replacing your income and allowing the financial plans you put in place to continue uninterrupted.

Why do I need Life Insurance?

Life Insurance is an essential part of financial planning. One reason most people buy life insurance is to replace income that would be lost with the death of a wage earner. The cash provided by life insurance helps ensure that your dependents are not burdened with significant debt when you die. Life insurance proceeds could mean your dependents will not have to sell assets to pay outstanding bill or taxes. An important feature of life insurance is that in most situations income tax is not payable on proceeds paid to your beneficiaries. 

How much life insurance do I need?

Before buying life insurance, you should assemble personal financial information and review your family's needs. There are a number of factors to consider when determining how much protection you should have. These include:
  • Any immediate needs at the time of death such as final illness expense, burial costs and estate taxes.
  • Funds for a readjustment period, to finance a move or to provide time for family members to find a job.
  • Ongoing financial needs such as monthly bills and expenses, day-care costs, college tuition or retirement.
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What type of Life Insurance?

After you have determined that you need life insurance and calculated how much coverage you require, you will need to decide on what type of life insurance you need. Generally, there are two types of life insurance products: 
What is Term Life Insurance?
What Is Permanent Life Insurance?