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While life insurance is not mandatory, a prudent individual purchases
life insurance to ensure that surviving family members and loved ones
are provided for should the insured individual become terminally or
critically ill or die.
What Life Insurance Covers
If the individual is the
breadwinner of the family, then it is critical that he/she has a life
insurance policy in place in order for the surviving family members to
afford their accustomed standard of living. Life insurance will cover
unpaid medical bills and funeral expenses and provide income
replacement for surviving loved ones.
Term Life Insurance and Permanent Life Insurance
You have
two types of life insurance from which to choose: term life insurance
and permanent life insurance. Term life insurance covers the insured
individual for a pre-determined amount of time and does not accumulate
a cash value. Permanent life insurance remains in full force until the
policy pays out and accumulates a cash value for as long as the policy
is in effect.
According
to LIMRA International, one in three Americans does not have a life
insurance policy. If you are currently uninsured, get free quotes here
for a customized affordable life insurance plan.