Learn about Life Insurance

Use this page to understand how life insurance can protect your loved ones and help you grow wealth you can use while living.

Life Insurance 101

Understanding life insurance can be overwhelming for beginners because of the many complicated terms and details. But the main idea is simple: Life insurance is there to help your family maintain their lifestyle and financial security if something unexpected happens to you.

It's a way to protect the future you're building for your loved ones. Want to know more about what it is, how it works, and if you need it? Learn the basics to get started with life insurance.

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The Basics

A life insurance policy is a contract between you and an insurance company.

In that contract, you agree to make payments (premiums) to the insurance company for a specified period of time (sometimes for the duration of your life), and the insurance company agrees to provide a lump-sum cash payout ("death benefit") in the event that you pass away within the duration of the policy. The contract is legally binding and government-regulated.


 When you buy a life insurance policy, you pay the insurer and name beneficiaries who would typically receive a tax-free payout (death benefit) if you were to pass away while the policy is active.

Simply, every life insurance policy is made of these four components:

Policyholder

The person who owns the life insurance policy and is paying the premiums. Typically, this is the person who applied for and is insured under the policy, but it’s also possible to purchase a policy on behalf of someone else.

Beneficiary

The person(s) or entity, people, business entity, or institution(s) that receive the death benefit if the policyholder dies. You can name one person (or more) as beneficiaries when you purchase a policy.

Premium

The money paid monthly or annually to keep a policy active (or “in-force”) during the term. Payment ensures that the insurance company will provide your beneficiaries with the stated benefit in the event of your passing. If you stop paying premiums, the policy lapses.

Death benefit

The money paid out if the insured person passes away. Death benefits are not subject to an income tax and beneficiaries generally receive the benefit in one lump-sum payment.

The Value of
Life Insurance

Life insurance is a way to provide for your loved ones. Have you ever considered whether your family would be able to manage household expenses if you were no longer there to assist with financial obligations? Especially if you have debts or a mortgage, it is crucial to ensure that your family could handle these financial responsibilities in case of your passing.

By offering financial support, life insurance can help your family avoid additional stress during a difficult period. We believe that investing in life insurance is a heartfelt gesture towards the people you hold dear.

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UNDERSTAND YOUR NEEDS

Do I need life insurance?

Not everyone needs life insurance. However, most people can benefit from some sort of coverage.

According to LIMRA, one in three families might not be able to meet their day-to-day expenses within a month of the primary breadwinner’s death.


A life insurance policy can help your family maintain the lifestyle they've grown to love and provide long-lasting financial security.

If you answer yes to any of these questions, you need life insurance.

  • If you were to die, would you leave behind debt?

  • Would your loved ones face financial hardship?

  • Do you have dependents, own a small business or have a sizable personal estate?

Does life insurance fit my current situation?

Buying life insurance while you are young and healthy can help you secure lower premiums. Your best bet is to get life insurance as soon as it becomes a must-have in your life. Life events such as marriage, a new baby, and even starting a new business can trigger a need to put a policy in place.

If you fall into any of the categories below, consult our team to discover what life insurance solutions will match your unique needs. 

Homeowners

If you've purchased a home, life insurance is a great option to help cover the expense of a mortgage payment. This will also help support any co-signers on your home in the event that you unexpectedly pass away.

Breadwinners

Life insurance can help your loved ones pay for living expenses, tuition, debts, and other expenses your income supported.

Parents

Whether you work or stay at home, you’re responsible for taking care of your children. Especially if you’re a single parent, life insurance can provide financial stability to your children should something happen to you and help cover the costs of living, education, and more.

You're married

If you're married or have a domestic partner, life insurance can protect your loved one and the life you are building together. It can help cover your lost income and shared expenses such as credit card balances, car loans, and monthly rent, so you leave your partner in a good financial situation.

Individuals with debt

Even if you’re single with no children, life insurance can be a good idea if you carry debt. Some student loans won’t be discharged due to bankruptcy or death, so coverage can help alleviate the financial burden on your family.

Business owners

Life insurance can also protect your business. It can be used to pay off your business debts or help the company stay afloat while they learn to get along without you.

You want to cover your end of life expenses 

Small life insurance policies can pay for your funeral and final expenses so that burden isn't left to your family.

You're single

In addition to protecting your family from inheriting your debt, life insurance can help provide support for anyone that depends on you, like aging parents or siblings. You may also want to consider buying life insurance while you're young so that by the time you need it, you do not have to pay more due to your age.

You want to build wealth or generate retirement income

Leveraging life insurance products like an Annuity or Index Universal Life policy are great ways to accumulate cash value funds and provide retirement income or cash liquidity when you need it most  

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