The major purpose of life insurance is protection — the instant estate to meet survivor needs. Some policies include a savings feature, but there are many other ways to save money and make investments.

How would you describe life insurance?

Life insurance is a contract between you and an insurance company. Essentially, in exchange for your premium payments, the insurance company will pay a lump sum known as a death benefit to your beneficiaries after your death. Your beneficiaries can use the money for whatever purpose they choose.

Why do think life insurance is important?

Insurance is key to you being able to focus on the important things in life, because it will ensure financial security for you and your family should anything unfortunate happen. Life insurance provides financially for your loved ones should you become unable to work.

How do I decide on life insurance?

To choose the best length for a term life insurance policy, consider the length of the debt or situation you want to cover. For example, if you’re buying term life to cover the years until your children are through college, and that’s in nine years, you might pick 10-year term life insurance.

Why do people need to have life insurance?

You may well need more coverage than you think. Sometimes people think life insurance is to pay off their own debts and funeral expenses. But a key advantage of having life insurance is to ensure that the people who depend on you will be OK with their ongoing and future financial needs if something happens to you.

Who are the beneficiaries of a life insurance policy?

If you should suddenly or unexpectedly shuffle off this mortal coil, the beneficiaries named in your policy–often your family members–get the benefits of the policy. You buy a policy and pay the monthly or annual fees (a.k.a: premiums) on time.

What does the Bible say about life insurance?

Insurance doesn’t prevent accidents or death; it provides protection for unanticipated expenses you couldn’t otherwise pay; and as the above-quoted article continues to state, it “merely compensates you if you suffer such a loss so that you can regain your economic feet. In case of death, insurance provides security for widows and children.”

What do you need to know about permanent life insurance?

Permanent life insurance: With permanent life insurance (whole, universal, variable) you typically pay higher premiums in the short term, but then these policies generally allow you to accumulate cash value over time. Your coverage is designed to last as long as you continue to pay premiums. 3.