Life Insurance

💡 What Is Life Insurance?

Life insurance is a financial protection contract between you (the policyholder) and an insurance company.

You pay regular premiums (monthly, quarterly, or annually).
In return, the insurance company promises to pay a lump sum (called a death benefit) to your beneficiaries if you pass away while the policy is active.

1. Term Life Insurance

Simple and affordable.
Ideal for income replacement during working years.
Example: A 20-year, $500,000 term policy — if you die within 20 years, your family gets $500,000. If you outlive it, coverage ends (no payout)

2. Permanent Life Insurance

Whole Life

- Fixed premiums, guaranteed death benefit, guaranteed cash value growth.

Universal Life (UL)

- Flexible premiums and a death benefit earn interest.

- Adjustable coverage

Indexed Universal Life (IUL)

- Cash value grows based on a market index (like S&P 500) with downside protection.

- Growth potential + safety.

Variable Universal Life (VUL)

- Cash value invested in market subaccounts (like mutual funds).

- Higher risk and higher potential returns

💰 Cash Value (in Permanent Life Insurance)

A savings component that grows tax-deferred.
You can borrow or withdraw from it for retirement, emergencies, or education.
Loans are tax-free as long as the policy stays in force.

Example

Let’s say you buy a $500,000 life insurance policy:

You pay $50/month for a 20-year term.
If you die in year 10 → your family gets $500,000 (tax-free).
If you live past 20 years → coverage ends (no payout).

If you had a permanent policy, it would:

Stay active for your entire life.
Build cash value that grows over time.
Allow you to borrow from the policy later, tax-free.

🧠 Why Life Insurance Matters

Protects your family’s financial future.
Ensures debts and living costs are covered.
Helps with estate planning and legacy building.
Provides peace of mind knowing your loved ones are secure.

Get Life Insurance Coverage. Protect yourself and Loved Ones.