Life Insurance

The most common types are:

• Term Life Insurance – Provides coverage for a set period (10, 20, or 30 years). It’s typically more affordable and straightforward.
   
• Whole Life Insurance – Permanent coverage that lasts a lifetime, with a guaranteed death benefit and cash value that grows over time.
   
• Universal Life Insurance – Offers lifelong protection with flexible premiums and potential to build cash value.

 A common guideline is to have coverage equal to 10–12 times your annual income. You should also consider your debts, mortgage, children’s education, and your family’s future living expenses when deciding the right amount. 

 Life insurance is recommended if you:

• Have dependents who rely on your income (children, spouse, aging parents).
   
• Want to ensure debts like a mortgage or loans don’t burden your family.
   
• Own a business and want to protect your partners or employees.
   
• Want to leave a financial legacy or cover final expenses.

 Life insurance typically does not cover:

• Fraud or misrepresentation on the application.
   
• Certain causes of death within the first two years (such as suicide, depending on state laws).
   
• Illegal activity or criminal involvement.

 Premiums depend on factors like:

• Type of policy (term is usually the most affordable).
   
• Your age and health.
   
• Coverage amount and length of term (if applicable).
  Younger, healthier individuals usually lock in the lowest rates.

 Yes. Many people carry multiple policies—for example, a term policy to cover their working years and a permanent policy to leave a legacy or cover lifelong needs. 

 Not all. Whole and universal life insurance build cash value that you can borrow against or withdraw. Term life insurance does not build cash value but is generally more budget-friendly.