Life insurance is a financial contract between you and an insurance company that provides a lump-sum payment (known as a death benefit) to your beneficiaries upon your death. This payment helps your loved ones cover expenses such as mortgage payments, debts, education, or everyday living costs, offering financial security during a difficult time.

Why Life Insurance Is Important

Life insurance offers peace of mind, knowing your family or dependents will be financially protected if something happens to you. It helps:

• Replace lost income

• Pay off outstanding debts

• Fund children’s education

• Cover funeral and final expenses

• Ensure business continuity

Without life insurance, your family may face financial hardships at a time when they’re already coping with emotional loss.

Types of Life Insurance

1. Term Life Insurance

Term life provides coverage for a specific period (e.g., 10, 20, or 30 years). It’s often the most affordable option and is ideal for those who need coverage during key life stages, like while raising children or paying off a mortgage.

2. Whole Life Insurance

Whole life offers lifelong coverage and includes a cash value component that grows over time. It’s more expensive than term life but can act as both insurance and a savings tool.

3. Universal Life Insurance

A flexible policy that allows you to adjust your premium payments and death benefits. It also includes a cash value component with potential for interest-based growth.

Choosing the Right Policy

Selecting the right life insurance policy depends on several factors:

• Your age and health

• Your financial responsibilities

• Your income and lifestyle

• Future goals (e.g., paying off a home, funding education, business planning)

A financial advisor or insurance agent can help you evaluate your needs and recommend a policy that fits your situation.

When Should You Get Life Insurance?

The earlier you purchase life insurance, the better. Premiums are generally lower when you’re younger and healthier. Key life events—such as getting married, having children, buying a home, or starting a business—are ideal times to consider or review your coverage.