Life insurance is designed to provide a benefit upon your death to whomever you appoint as the beneficiary. There are several types of life insurance being sold in today’s market. Each is a variation of two basic types of life insurance: term insurance and permanent insurance. A term policy protects the insured for a specified period of time and usually does not build cash value. A permanent policy protects the insured for the lifetime and normally gains cash value. There are several variations of permanent insurance such as whole life, universal life and variable life. Each of these types of insurance policies has its own specific language and performs differently.

Please be sure to read your policy very carefully.

When purchasing life insurance, it is important to keep the following questions in mind:

• What will my final (funeral) expense cost?
• How much debt will I leave behind for my family to repay?
• Is there enough money set aside for my children’s education?
• Who depends on me financially and for how much?

All these questions should be asked prior to selecting a life insurance policy. Once you have determined the future financial needs of your family if you were to die, you then will have a general idea of the coverage that is needed to offset those costs.

It’s important to seek advice from an experienced agent about what type of life insurance is best suited for your needs. Your age and health play the largest role in factoring the cost of life insurance. Also, remember that some policies, in the beginning, may not pay benefits for some causes of death. Always read your policy thoroughly.

Source: Kentucky Public Protection Cabinet/ Department of Insurance