Life Insurance

There are several different types of life insurance, all with a common purpose: to protect your loved ones from bearing a large financial burden in the event of your premature death. Your needs will change throughout your life, so it’s important to understand the basics and periodically review your coverage to ensure that it’s still right for you.

There are two basic types of life insurance:

• Temporary insurance, including Term Life and Group Life
• Permanent insurance, including Whole Life, Universal Life, and Variable Universal Life

If you purchase life insurance, the insurance company will pay a death benefit to the beneficiary or organization named in the policy when the holder dies. (In the case of temporary insurance, your death must be during the policy term.) The choice between temporary and permanent insurance will depend upon your personal goals and objectives.

How much life insurance do you need?

Life insurance is intended to provide for your family’s financial security, and can help bring peace of mind. Calculating the right amount of coverage to suit your situation can be difficult—and depends on your personal goals and objectives.

Most insurance companies recommend that your total life insurance coverage should equal to five-to-eight times your annual income. Many people use a combination of the types of life insurance listed below to meet changing needs over the course of a lifetime.