Brian So Insurance: Safeguarding Your Future With Expert Care

Life insurance is a contract between you and the insurance company. You pay a premium to the insurance company. In return, the insurance company agrees to pay a tax-free lump sum benefit to your beneficiaries when you pass away.

You need life insurance if your loved ones will suffer financially upon your premature death. This could be for people who are just starting their families, empty nesters who have a few years to go until retirement, seniors who want to cover their final expenses, and much more.

You need enough to cover at least a few years of income replacement, pay off some debt, build your children’s education fund, and pay for final expenses like the cost of a funeral.

Many people choose to have enough coverage to pay off their mortgage and replace their income until their children are adults.

Ideally, your coverage will last until your retirement or your debt is paid off, whichever occurs later. If you want to cover final expenses, you need the coverage to last a lifetime.

The two main types of life insurance are term and permanent life insurance. Term insurance covers you for a set number of years like 10 or 20 years. The premium is guaranteed not to change during the entire term. Term insurance is the most affordable type of life insurance.

Permanent insurance lasts a lifetime and costs a lot more than term insurance for the same amount of coverage. The benefit is that premiums are guaranteed level throughout your life.