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Types of Life Insurance:
There are two main categories of life insurance:
Term life insurance: This type of policy provides coverage for a specific period (term), such as 10, 20, or 30 years. If you die within the deadline, the death benefit is paid to your beneficiaries. However, if you exceed the deadline, the policy expires, and no money is paid. Term life insurance is generally more affordable than whole life insurance.
Whole life insurance: This type of policy offers lifetime coverage, which means you'll pay a death benefit every time you pass away. In addition to the death benefit, whole life insurance policies also build cash value over time. You can borrow against this cash value or withdraw it (with some limitations). Whole life insurance is usually more expensive than term life insurance.
Life Insurance Benefits:
Provides financial security to beneficiaries: The death benefit can help your loved ones cover expenses such as funeral costs, outstanding debts, mortgage payments, or college tuition.
Peace of mind: Knowing that your loved ones will be financially secure after you're gone can give you peace of mind.
Cash Value Benefit (Whole Life Only): Whole life insurance policies can build cash value that you can access through loans or withdrawals.
How much life insurance do you need?
The amount of life insurance you need depends on several factors, such as:
Your income: How much income do your beneficiaries depend on that would be lost if you die?
Debts and liabilities: Do you have any outstanding debt, such as a mortgage or student loans, that your beneficiaries would need to cover?
Dependents: Do you have dependents, such as children or spouse, who would depend on your financial support?
Standard of living: Do you want to leave your beneficiaries enough money to maintain their current standard of living?
Finding the right life insurance policy:
MB Insurance & More Services agents will help you find the right life insurance policy:
We consider your needs and budget: We'll help you figure out the type and amount of coverage you need and find a plan that fits your budget.
We compare quotes from different insurers: We look for quotes from multiple insurance companies to compare rates and coverage options.
As a financial advisor: We will provide you with the financial advisor to assess your needs and recommend the type and amount of life insurance that is right for you.
Life insurance can be a valuable tool for financial planning and ensuring that your loved ones are taken care of after your death.
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