Life insurance is a contract that provides financial protection to your beneficiaries in the event of your death, offering a payout to help cover expenses like funeral costs, debts, and lost income. Additionally, certain types of life insurance can build cash value over time, which can be accessed for retirement needs or other financial goals.

People can use life insurance to provide financial security for their loved ones by ensuring that debts, living expenses, and funeral costs are covered in the event of their death. Additionally, it can be used to cover key employees in a business, providing funds to help manage the impact of their loss and facilitate a smooth transition, while also allowing policyholders to build cash value over time for emergencies or retirement.

Term life insurance provides coverage for a specific period, typically ranging from ten to thirty years, paying a death benefit to beneficiaries if the policyholder dies within that term. It is often more affordable than permanent life insurance, making it a popular choice for those seeking financial protection during key life stages, such as raising a family or paying off a mortgage.

Whole life insurance provides lifelong coverage with a guaranteed death benefit and builds cash value over time, while term life insurance offers coverage for a specified period without cash value accumulation. This key difference means that whole life offers long-term benefits and stability, while term life is often more budget-friendly and ideal for meeting temporary financial needs.

Index universal life insurance combines lifelong coverage with a flexible premium structure and the potential for cash value growth linked to a stock market index. This type of policy allows policyholders to adjust their premiums and death benefits while providing the opportunity for higher returns on cash value compared to traditional whole life insurance, making it a versatile option for long-term financial planning.

Annuities are financial products that provide a steady stream of income, typically in retirement, through a series of payments made to the policyholder in exchange for a lump sum or series of contributions. They come in various forms, including fixed, variable, and indexed, allowing individuals to choose options that best fit their financial goals and risk tolerance, making them a valuable tool for long-term financial security.

Business-oriented life insurance policies, such as key person insurance and buy-sell agreements, provide financial protection for businesses by covering the loss of essential employees or facilitating the transfer of ownership in the event of an owner’s death. These policies help ensure business continuity, mitigate financial risks, and provide funds to cover expenses related to the transition, protecting the overall value of the business.