Learn how it works and what you need to understand to choose your coverage.
A life insurance policy is a contract with an insurance company. In exchange for premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured's death.
Typically, life insurance is chosen based on the needs and goals of the owner. Term life insurance generally provides protection for a set period of time, while permanent insurance, such as whole and universal life, provides lifetime coverage. It's important to note that death benefits from all types of life insurance are generally income tax-free.1
There are many varieties of life insurance. Some of the more common types are discussed below.
Talk to an expert. Now that you know the basics an expert can help guide you the rest of the way...