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Life Insurance: The Basics

Life Insurance: The Basics

When it comes to the financial health of your family or business, you probably think you have all of the bases covered: a good job, a good marketing strategy, savings, retirement and even investments. The question is, when you are no longer around to provide these, how can you protect your family and/or business? The answer is life insurance. It doesn’t have to be a daunting concept, if you know the basics. Here we will share some basic policy concepts to help you decide which type of life insurance policy may be right for you. Term Life Insurance Term insurance is exactly what it sounds like: a policy that is purchased for a certain term, usually anywhere from 5 to 30 years. You can purchase term life insurance for a set number of years based on your age, your tobacco habits and many other features. The monthly premium for the term can be either a fixed amount per month, or the premium may fluctuate up or down over the years, depending on when you are purchasing the policy and why (such as for the terms of a mortgage). The policy may be purchased at any age or stage in life, but age is a factor in determining the premium. Pros: Premiums are typically much lower than other types of life insurance policies written for the same amount.  There is usually no health exam associated with the policy wih lower limits of coverage, just a questionnaire about your personal habits, hobbies and job. Higher limits may require a paramed exam. Term insurance may also be transferred to a whole life...