Life Insurance Basics

Term life insurance provides coverage for a specific period (such as 10, 20, or 30 years) and pays a tax-free benefit if you pass away during that timeframe. Permanent life insurance, on the other hand, provides lifelong protection as long as premiums are paid, and it includes a cash-value component that can grow tax-deferred over time.

The right amount depends on your financial goals. A common rule of thumb is 10 to 15 times your annual income, but a proper evaluation considers your outstanding mortgage, debts, future educational costs, income replacement needs for your family, and final expenses.

Yes. Modern life insurance policies often include Living Benefits (accelerated death benefit riders). These allow you to access a portion of your policy's death benefit early if you are diagnosed with a qualifying terminal, chronic, or critical illness.