WHY LIFE INSURANCE?
Life insurance protects against loss of income due to death. This "death benefit" replaces the loss of income that a family may be dependent upon.
Have you ever imagined what life would be like for the loved ones you left behind in case of a tragic death? Without considering the emotional loss, how will your spouse continue to support the family? As income stops, unfortunately bills and expenses do not. Where will the money come from to keep the roof over their head, have food on the table, clothes to wear, bills to pay, college to fund, retirement to plan? All these questions can be simply answered with life insurance.
Additionally, certain life insurance products also have living benefits. These policies have built-in savings (cash accumulation) to allow the owner to systematically save for future goals such as college savings, retirement, etc. These savings grow tax deferred, like a 401(k) and IRA. The use of the cash value may also be tax free. Furthermore, under most circumstances, the death benefit will be federally tax free. Life insurance is also important component of estate planning.
There are two major categories of Life Insurance, Term and Permanent.