I’m too young for life insurance.

MYTH

I can’t afford life insurance.

MYTH

I’ve got life insurance I need through my employer.

MYTH

What is the purpose for life insurance?

Life insurance is a way to leave money behind for the people who depend on you for financial support: partner, children, even parents. Maybe they’ll use the funds to cover funeral costs, meet living expenses or pay off any debts you may have.

What is a Term Life insurance?

Term life insurance is life insurance that guarantees payment of a death benefit during a specified term. Like 10,15,20,25,30 or even 40 years. Once the term expires, the policyholder can either renew for another term, convert to permanent coverage, or allow the policy to terminate. Term life insurance policies provide a stated benefit upon the death of the insured, provided that the death occurs within a specific period.

Term life insurance is attractive for young couples with children.  Parents may obtain large amounts of coverage for reasonably low costs. Upon the death of a parent, the significant benefit can replace lost income. They are also well-suited for people who temporarily need specific amounts of life insurance. In these cases, the policyholder believes their survivors will no longer need extra financial protection, or they will have accumulated enough liquid assets to self-insure. 

What is a Permanent Life insurance?

Permanent life insurance is an umbrella term for life insurance plans that do not expire, unlike term life insurance which promises payment of a specified death benefit within a specific period of years.

Typically, permanent life insurance combines a death benefit with a savings portion, allowing policies to build cash value, against which the policy owner can borrow funds or, in some instances, withdraw cash to help meet needs such as paying for a child's college education or covering medical expenses. 

The two primary types of permanent life insurance are whole life and universal life insurance policies. Whole life insurance offers coverage for the full lifetime of the insured and its savings can grow at a guaranteed rate. Universal life insurance also offers a savings element in addition to a death benefit, but offers different types of premium structures and earns based on market performance.