Get Affordable Life Insurance!

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Get Affordable

Life Insurance!

Male Female

What is Life Insurance?

Life insurance, simply put, is insurance on your life. It is something you purchase which offers a way to financially provide for those you care about after you pass away. When you die, the insurance company pays money to your beneficiaries. The beneficiaries named in your life insurance policy can be family, friends, or even a charitable organization, as long as there is an insurable party. The money obtained from a life insurance policy can help your family pay your funeral costs, as well as your medical bills, mortgage, debts, car payments and your children's college education. It can also be used to pay inheritance taxes and probate taxes. In short, life insurance can help sustain your family financially once you are no longer around to provide for them.

Life insurance also makes sense because it is tax free. Some life insurance policies can also be considered an investment because they are limited term, meaning they pay out cash when they mature, but also offer a lump sum should the policy holder die before the maturity date. Besides term life insurance, there are several other types of life insurance policies that you can obtain. Before you purchase any policy you must determine how much life insurance you need. This is based on a number of factors related to age and responsibilities, as well as financial considerations. The cost of your policy, otherwise called your premium, is dependent upon the amount of life insurance you wish to purchase. The premium is paid at regular intervals or in a lump sum. It's important to select the type of life insurance policy that meets your coverage goals and current family budget. Meshing these two considerations together will go a long way toward establishing an overall financial plan that both satisfactory and secure.