Life insurance is a contract between you and an insurance company. You pay premiums, and in return, the company pays a death benefit to your beneficiaries upon your death.
The amount of life insurance you need depends on various factors, including your income, debts, and the financial needs of your dependents. Generally, it is recommended to have coverage that is 10-12 times your annual income.
Yes, many life insurance policies offer flexibility to adjust coverage and premiums as your needs change. It's important to review your policy regularly to ensure it still meets your needs.
Term life insurance provides coverage for a specific period, while whole life insurance offers lifelong coverage with a cash value component. Term policies are generally more affordable, whereas whole life policies can serve as an investment vehicle.
Choosing the right policy involves assessing your financial needs, understanding the different types of life insurance, and consulting with a licensed agent to find the best fit for your situation.
Factors that affect premiums include age, health, lifestyle, occupation, and the amount of coverage you choose. Non-smokers and those in good health typically receive lower premiums.