Life insurance covers your family's needs
in the event of your death, from funeral expenses to ongoing
financial requirements. There are several types of life insurance
that offer different coverage and payment options. Before you
decide which works for you best, you should know:
How
Life Insurance Is Typically Used:
For any immediate needs at the time of death,
such as final illness expenses, burial costs and estate taxes.
For funds for a readjustment period, to finance a move, or to
provide time for family members to find a job. For ongoing financial
needs, such as monthly bills and expenses, day-care costs, college
tuition or retirement.
Term
Insurance
Term insurance provides
coverage for a specific period of time. It pays a benefit only
if you die during the term. Some term insurance policies can
be renewed when you reach the end of the specific period. Others
give you the ability to reenter. The premium rates increase
at each renewal date or each reentry. Many policies require
that evidence of insurability be furnished at reentry for you
to qualify for the lowest available rates.
Initially, premiums are generally
lower than those for permanent insurance, allowing you to
buy higher levels of coverage at a younger age, when the need
is often the greatest.
Life
Insurance
How
Life Insurance Is Typically Used: