What is Life Insurance?

Answer:

Life insurance is the type of insurance nobody

wants to talk about but that everyone should have. There’s an old saying that life insurance is never bought but always sold. In other words… most people avoid it like the plague because it involves contemplating their own demise. Unfortunately, when death strikes close to home—this is when it’s considered—and too often this is too late.

Life insurance pays someone you designate (a beneficiary) a lump sum if you die. It’s designed to ensure that life can go on in as normal a fashion as possible if a key person in the home meets a premature death. It’s useful for a stay-at-home mom for example, to receive the face amount of a life insurance plan on her insured husband since he’s the one that’s been bringing home the bacon. She can continue to live the life she had been living (sans husband) if the benefit is sufficient to sustain the family. Bills can be paid, funds for college educations can be secure etc. Likewise… if the main caregiver in the home passes away… the surviving spouse can afford to hire child care and continue working to support the family.

Life insurance is a critical need for a young family—not optional. The death of a parent can dash dreams of a bright future for a family in a heartbeat.


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