Life Insurance

The primary purpose of life insurance is to provide a financial benefit to dependents upon premature death of an insured person. The policy pays a specified amount called a “death benefit” to the named beneficiary, when the insured dies.

People purchase life insurance for many reasons; to provide an income to replace lost earning potential, to fund business or partnership buy outs in the event of death of one of the business owners, to fund retirement plans, to indemnify a loan in the event of premature death, to pay for college educations, to provide dependency income for the family, and to protect future insurability, are just a few.

Whole life insurance, universal life insurance, and term life insurance are three main types of life insurance.