7 Things You Need to Know About Life Insurance
Life insurance is a critical aspect of personal finance that provides financial protection for your family in case of an unexpected death. Here are the key things you need to know about life insurance: Purpose: The main purpose of life insurance is to provide financial security to your loved ones in the event of your death. The policy pays out a death benefit to the beneficiaries, which can be used to cover expenses like funeral costs, outstanding debts, and living expenses. Types of life insurance: There are two main types of life insurance - term life insurance and whole life insurance. Term life insurance provides coverage for a specified term, usually 10, 20, or 30 years, and pays out a death benefit if the policyholder dies within that term. Whole life insurance, also known as permanent life insurance, provides coverage for the policyholder's entire life and also accumulates cash value over time. Coverage amount: When choosing life insurance, it is essential to determine the