Before You Buy Life Insurance

Too many people skip investing in life insurance because all the terminology and the labels intimidate them. Our mission is to make the process of securing your family’s financial future as easy as possible. Here are some basic facts you need know when you are considering a life insurance policy.

There are two main types of life insurance:

1.Term life insurance
2.Whole life insurance (sometimes also called permanent life insurance)

When you have term life insurance you pay a monthly premium. The policy has a fixed term. Often term policies are for 5, 10, 25, or 30 years. However, there are a lot of different variations.

If you were to pass on during the term of your policy, the person you designated as your beneficiary would receive the life insurance payout.

Whole life insurance works differently. A whole life policy will pay out benefits to your beneficiary whenever you die, and can even do so if you live past 100.


A Whole Life insurance provides protection over the insured’s entire lifetime. The policy’s fixed and level premiums are created to make the whole life insurance contract affordable for as long as you decide to keep it.

As a result of the fixed and level premium, the policy develops cash values. There is also a death benefit that remains level throughout the lifetime of the policy.


The premium and the death benefit remain the same throughout the lifetime of the insured. Depending on your schedule of premiums in a whole life insurance policy, you may be able to cash out the policy.

This is an alternative to getting the death benefit. You would get the cash while you were still alive.

There are several different variations of whole life insurance and many other things you can use it for. Whole life insurance premiums are usually more expensive than term life premiums, especially the younger and healthier you are.