Life insurance is a contract between you and an insurance company where you pay premiums, and in exchange, the insurance company provides a lump-sum payment to your beneficiaries upon your death. This payment is intended to provide financial support to your loved ones after you’re gone.

Life insurance helps protect your loved ones financially in the event of your death. It can cover funeral expenses, pay off debts, replace lost income, and ensure your family’s financial stability.

There are several types of life insurance, including term life, whole life, universal life, and variable life insurance. Each type has its own features, benefits, and premium structures.

Term life insurance provides coverage for a specific period, such as 10, 20, or 30 years. It pays a death benefit to your beneficiaries if you die during the term of the policy. Term life insurance is typically more affordable than permanent life insurance.

Whole life insurance provides coverage for your entire life, as long as premiums are paid. It also includes a cash value component that grows over time and can be borrowed against or withdrawn.

Universal life insurance is a type of permanent life insurance that offers flexibility in premium payments and death benefits. It also includes a cash value component that earns interest over time.

The cost of life insurance premiums is determined by factors such as your age, health, lifestyle, occupation, and the amount of coverage you need.

The amount of life insurance coverage you need depends on factors such as your income, debts, future expenses, and financial goals. A financial advisor can help you determine the appropriate amount of coverage for your situation.

Yes, you can typically adjust your life insurance coverage as your needs change. You may be able to increase or decrease your coverage amount, change your beneficiaries, or convert your policy to a different type of life insurance.

If you miss a premium payment, your life insurance policy may lapse or be subject to a grace period, depending on the terms of the policy. It’s essential to stay up-to-date on premium payments to keep your coverage active.