What is life insurance? Think of it as a contract involving three parties – an insured person, a life insurance provider and a beneficiary. When the insured person dies, the contract stipulates that, following the filing of a death claim, the life insurance provider pays a sum of money to the beneficiary or beneficiaries. But the impact of life insurance is far-reaching. It can make all the difference to your loved ones by enabling them to enjoy the lifestyle you planned for them, even when you’re no longer here.
Life insurance can be used to cover burial expenses, pay the mortgage, fund your child’s education, and provide a nest egg for your family or favorite charity. Permanent life insurance can help you accumulate cash value on a tax-deferred basis to supplement your retirement savings.