Life insurance is not the mysterious unknown some people may look upon with fear and dread. Rather, life insurance is simply a contract between you (the insured) and an insurance company, in which you agree to pay the insurance company the premiums according to the terms of your policy. In return, upon your death, the insurance company agrees to pay the amount you chose as the death benefit to the person you designated as your beneficiary.

 

The old saying goes “Life insurance is for the living,” and it’s true. Beyond possibly a sense of satisfaction at having taken a step toward looking after the financial welfare of loved ones in the future, there may be no other benefit to the insured at all. The purpose of life insurance is to help protect the financial wellbeing of loved ones or those who would be adversely affected by your death. Financial uncertainty alone is bad enough, but grieving loved ones certainly don’t need it added to their burden during one of the worst times in their lives.

 

 

 

Life insurance is not one-size-fits-all

Those who are unfamiliar with life insurance may tend to think it’s just one certain thing, but it’s not. There are two basic kinds of insurance, whole and term life, and there are variations within those categories; not all whole life policies are the same and not all term life policies are the same. Both whole life and term life may play a role in your long-term financial plan.

 

To read more of this article from American Income Life go to https://www.ailife.com/articles/things-to-consider-before-buying-life-insurance.html