Life insurance is income replacement. It provides the peace of mind that comes with knowing that if something should happen to you, your family and loved ones will be provided for financially.
When you purchase life insurance, you pay a premium to the life insurance company with the understanding that they agree to pay the face amount or death benefit to the beneficiary you have named. Your premium can be paid either in one lump annual payment, in semi-annual payments, in quarterly installments, or in monthly payments.
When shopping for life insurance it is important to carefully compare potential policies. It is recommended to keep the following factors in mind:
- The insurance company’s financial strength
- Guarantee periods
- Available riders