Life insurance is a contract between a policyholder and an insurer wherein the insurer agrees to pay a sum of money in exchange for a premium upon the demise of an insured person or after a predetermined period.
Protecting yourself and your family against unforeseen circumstances is something everyone should consider. This could be protecting against premature death, providing for dependents, or protecting against the loss of earnings due to serious critical illness or disability. In your life, you work hard to make sure those you love — spouse, children, and family members — are taken care of. It’s just as important to consider providing financial support for the future living costs of surviving dependents. You never know when you die. Dying suddenly — in an accident, by an unexpected illness, or even of natural causes — can happen at any time.
Financial protection for our families in case of our death or the death of a family member is essential. Life insurance pays a death benefit if you die while the policy is in effect. You can use the death benefit to protect against financial hardships such as loss of your income, funeral expenses, medical or nursing care expenses, debt repayments, and childcare costs after your death.
- Income replacement for years of lost salary.
- Paying off your home mortgage.
- Paying off other debts, such as car loans, credit cards, and student loans.
- Providing funds for your kids’ college education.
- Helping with other obligations, such as care for aging parents.