Life insurance provides a financial payout to your beneficiaries after your death. This can help cover funeral expenses, debts, and provide financial support to loved ones.
- Example:
Term Life Insurance: Provides coverage for a specific term, say 20 years. If you pass away within that term, the policy pays a death benefit to your beneficiaries. If you outlive the term, there is no payout.- Whole Life Insurance: A type of permanent insurance that provides coverage for your entire life and includes an investment component. This can accumulate cash value over time, which you can borrow against or use to pay premiums.
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