Life Stage Key Considerations Young Adults Minimal financial obligations, but coverage can provide peace of mind and cover funeral expenses. Young Families Replace lost income, cover childcare and education expenses, ensure financial stability for children. Empty Nesters Cover remaining debts, provide financial support for surviving spouse, leave a legacy for heirs. Retirees Cover final expenses, … Read more
Rider Type Description Accidental Death Benefit Rider Provides additional death benefit if death occurs due to an accident. Waiver of Premium Rider Waives premium payments if the insured becomes disabled and unable to work. Accelerated Death Benefit Rider Allows the insured to access a portion of the death benefit if diagnosed with a terminal illness. … Read more
Type of Life Insurance Description Affordability Term Life Insurance Provides coverage for a specific period (e.g., 10, 20, or 30 years) with no cash value component Affordable premiums, especially for younger individuals Group Life Insurance Coverage offered through employers or associations, often at lower group rates Affordable for employees or members of the group Simplified … Read more
Myth Debunked Life insurance is only for older people. Life insurance is important for individuals of all ages. Life insurance is too expensive. Life insurance costs vary based on factors such as age, health, and coverage amount. I don’t need life insurance if I’m single. Life insurance can still be beneficial for single individuals, covering … Read more
Benefit Description Financial Protection Provides a safety net for loved ones in case of death Estate Planning Helps cover estate taxes, debts, and other expenses Wealth Preservation Preserves assets and ensures continuity of financial plans Liquidity Provides immediate funds to cover expenses without selling assets Wealth Transfer Facilitates the transfer of wealth to beneficiaries Risk … Read more
Feature Term Life Insurance Permanent Life Insurance Coverage Period Specific term (e.g., 10, 20, or 30 years) Lifelong Premiums Lower Higher Cash Value No Yes Policy Expiry Coverage ends at term’s end No expiry, coverage continues for life Ideal For Temporary coverage needs, budget-conscious Long-term financial planning, permanent needs Flexibility Less flexible, fixed term More … Read more
Term Definition Premium The amount paid by the policyholder to the insurance company for coverage Death Benefit The amount paid to beneficiaries upon the death of the insured person Beneficiary The person or entity designated to receive the death benefit Term Life Insurance Provides coverage for a specific period, with no cash value component Whole … Read more
Benefit Description Impact on Family Financial Security Provides a lump sum payment to beneficiaries Ensures financial stability and covers living expenses Debt Repayment Pays off outstanding debts (e.g., mortgage, loans) Relieves family from financial burdens Income Replacement Replaces lost income of the deceased Maintains family’s standard of living Funeral Costs Covers funeral and burial expenses … Read more
What is the primary difference between term life and whole life insurance? Answer: The primary difference between term life and whole life insurance is the duration of coverage and the presence of a cash value component. Term life insurance provides coverage for a specific period (e.g., 10, 20, 30 years) with no cash value, while … Read more
Table: Comparison of Life Insurance Types Feature Term Life Insurance Whole Life Insurance Universal Life Insurance Variable Life Insurance Coverage Period Specific term (e.g., 10, 20, 30 years) Lifetime Lifetime Lifetime Premiums Lower Higher Flexible Variable Cash Value No Yes Yes Yes Investment Component No No No Yes Flexibility Less Moderate High High Ideal For … Read more