Life insurance provides peace of mind and financial security for you and your loved ones by providing long-term financial stability against death from accidents or disease. It can also help with estate planning or retirement income.
Life insurance is a contract between an insured person and the life insurance company. When the insured person dies, the life insurance company pays a sum of money, typically a fixed amount of dollars, to the beneficiary.
You can take out life insurance on yourself or someone else. When you buy life insurance on your own life, you’re called the policyholder.
People often use life insurance as a form of financial security for their family in case something happens to them, and it can also help pay off debts such as mortgages and loans you may leave behind. Life insurance really is a must if you have people in your life who you want to protect in the event of your death.
You can purchase life insurance through a broker, and there are several kinds of life insurance to consider. One is term life insurance that covers a person until the term they get in the event of death. The second is called permanent whole/universal life insurance, and it pays benefits throughout a person's lifetime.
About critical illness insurance
Critical illness insurance is a type of insurance designed to provide financial protection for individuals against the financial consequences of serious illnesses.
It provides an individual with coverage for expenses related to treatment, lost income, and extra living expenses related to that illness.
Also known as "life insurance with a critical illness rider," you can use this type of insurance to pay for costs that medical insurance does not cover.
This type of insurance works well for individuals who find themselves in high-risk professions or who have dependents with medical conditions that may lead to increased health care expenses.
About accidental death and dismemberment insurance (AD&D)
AD&D policies are meant to cover the gap that isn't covered by life insurance. Accidental death and dismemberment insurance helps you protect yourself from financial loss in the event of an accident. Like the name says, it provides coverage for expenses incurred as a result of accidental death or dismemberment.
These policies will cover costs such as:
- Medical treatment
- Lost wages