Life insurance is fundamentally a product of indemnification. The
death benefit is intended to compensate the beneficiary for a loss suffered
because of the death of the insured. More specifically, the needs covered
by life insurance would include the following:
- Outstanding Debt (mortgage, car loans, etc.)
- Final Expenses (medical bills, funeral costs, probate
- Emergency Fund
Specific Family Objectives
- Estate Liquidity
What types of insurance are available?
Term Insurance - the lower premium alternative, term insurance protects
families if we die during a given time frame. It generally
renews every 10
or 20 years and premiums can increase significantly as we age. There
cash values with these plans.
Permanent Insurance - though initially more expensive than term, permanent
insurance protects our families when we die. Premiums generally
same and the death benefit and cash values can increase over time.