Life Insurance
Life insurance is protection against losses resulting from the death of the policyholder. The benefit paid to the policy's beneficiary can be a valuable tool towards ensuring the financial health of your family by covering a debt or mortgage, paying for a college education, or protecting a business.
Term life insurance
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insurance for a defined period of time
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premiums are initially more affordable
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simple and straightforward to understand
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convertible to whole life insurance
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builds no cash value
Permanent life insurance
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provides protection for your entire life
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premiums remain the same over time
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flexible premiums and coverage amounts
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whole life insurance can earn dividends
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accumulates a tax-deferred cash value which can be borrowed against
How much insurance do you need?
The amount of life insurance needed is affected by several factors. Some of these determinants of how much life insurance is appropriate are:
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the amount of your mortgage balance or rental payments
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how much you want to allocate to pay off debts like credit card balances or loan payments
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length of time you wish the benefit to replace your lost income
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amount allocated to paying your child's college education expenses
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funeral costs
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amount set aside for charitable gifts or emergency funds