What is Life Insurance?

Life insurance is a type of insurance that provides financial support to the designated beneficiaries of the insured person in the event of their death. The policyholder pays regular premiums to an insurance company, and in exchange, the insurance company promises to pay out a sum of money to the beneficiaries upon the death of the insured person. The amount of the payout, or death benefit, depends on the terms of the policy and the premiums paid.

Life insurance can provide peace of mind for the insured person and their loved ones, knowing that their beneficiaries will be provided for financially in the event of their death. It can help cover expenses such as funeral costs, outstanding debts, and living expenses. Additionally, some life insurance policies offer additional benefits such as access to cash value and the ability to borrow against the policy.

There are several types of life insurance policies, including term life insurance, whole life insurance, and universal life insurance. Each type of policy has its own advantages and disadvantages, depending on the individual's needs and financial situation. It's important to work with a qualified insurance agent or financial advisor to determine which type of policy is best suited for your needs.

If you're interested in learning more about life insurance, contact Affinity Legacy Planning for help or to discuss your options.