Life Insurance 101: Understanding The Basics of Life Insurance

If you just got out of college and have landed your first full-time job, or maybe you’re starting out life, working towards your goals, milestone by milestone, you should be proud of yourself. Yes, you deserve your flowers and accolades, each step of your journey. Maybe you just tied the knot with the love of your life? Well, congratulations too! And you know what’s good to add to your progress at this point? Life Insurance. This seems to be a complex topic for many, but you don’t have to have it all worked out to get started. A Life insurance helps you rest well, knowing that your loved ones, in your absence, would be financially secure in the future. A Life Insurance also gives you flexibility and options financially and is one way to set you on track for building long-term wealth.

A Life Insurance is a legal agreement between you and an insurance company. This agreement between you and the company is called a policy. You pay an amount periodically, called a premium, and the insurance company pays your beneficiaries a lump sum payment when you die. There are policies that allow you to enjoy benefits during your lifetime, like a down payment for a home, medical needs, and emergencies. You do not need to have a million dollars to get life insurance. Age, health status, gender, nature of lifestyle, and your profession affect the cost of life insurance. But whatever your budget is, you can speak to a financial advisor to find a life insurance package that covers your needs without putting you too deep into your pocket. Over time, you can reassess your insurance plan to suit your needs.