Help protect your family’s future. Enter your zip code to get your free quote today!

Get Your Free Quote

Life Insurance Meaning and Importance

What is the meaning of life insurance and what is its importance? Life insurance is a form of protection from financial loss that grants your beneficiaries cash benefits in the event of your death. Listed below are some important differences between different types of life insurance policies and what they mean for you.

What Does Life Insurance Cover?

When the unexpected happens, life insurance policies can help keep your loved ones financially afloat. For a monthly fee (also called a premium), you can ensure that those who depend on you and your income have help covering costs such as:

  • Final expenses and funeral services
  • Outstanding debts and/or mortgages
  • Lost income
  • Educational expenses

Having life insurance can mean peace of mind for your surviving loved ones.

Who Benefits From a Life Insurance Plan?

If you have a spouse, children or other financial dependents, a life insurance policy helps ensure their security. Other common beneficiaries can include:

  • Business partners
  • Employees
  • Charities

What Type of Life Insurance Policy Is Right for Me?

Finding the right type of insurance policy doesn’t have to be complex. There are two main types of life insurance: term life insurance and permanent life insurance (sometimes referred to as whole life insurance).

  • Term life insurance 
    This type of life insurance provides full coverage of benefits during a specific term (typically between 1 and 30 years). Term life insurance is usually less expensive than permanent insurance. It may require a medical exam, but some types of term life insurance (such as simplified issue or guaranteed issue plans) may not. Issuance of a simplified issue policy may depend upon answers to health questions set forth in the application.

    In some cases, term life policies can be converted to whole life coverage if the insured decides he or she wants to change plan types.

  • Permanent life insurance
    Whole life insurance covers you during the span of your entire life. You pay a premium each month, which builds cash value over time (like a savings account). You can cancel a permanent life insurance policy while you’re still alive. There are three typical types of permanent life insurance: whole life, universal life and variable life. Each form has adjustable benefits and cash accumulation options.

Finding Life Insurance Policy Quotes

Whether you need term life insurance, permanent life insurance or just want to compare policies, connect with a licensed agent for help with the following services:

  • Getting relevant information about life insurance
  • Comparing competitive rates from multiple companies
  • Finding life insurance policies that fit your needs and budget

Find out what the meaning and importance of life insurance could be for you and your family. Call 800-966-7169 today to connect directly with a licensed term life insurance agent, or reach out online to request free policy quotes.

*Applications for insurance may be subject to acceptance by insurer. Rates and coverage amounts will depend upon the carrier selected.

Help protect your family’s future. Enter your zip code to get your free quote today!

Get Your Free Quote

Related Information

Is Life Insurance Important? 7 Reasons for Getting Protection

Is life insurance important? Here are seven important reasons why you should consider purchasing a life insurance policy.

Read More

What is Life Insurance? The Basics

What is life insurance and how does it help families in the event of your death? It can help pay for the cost of funeral expenses, lost wages, debts, and more.

Read More

Life Insurance: the Most Important Questions to Ask

By answering these important questions, you can ensure you are buying a life insurance policy that makes sense for you.

Read More

Steps for Claiming Term Life Insurance Benefits

Generally, there are 3 main steps beneficiaries must take to receive a life insurance payout: file a death claim, provide proof of death and wait for approval.

Read More

Level Term Life Insurance Explained

Level term life insurance policies have predictable and level premiums. Learn more about how you can help protect your family's financial future.

Read More

Why Life Insurance Is Important

Life insurance can help you protect your loved ones financially in the event of your death. Learn more about why it matters.

Read More

Term Life Insurance Policies and Benefits

Protect your family from facing a financial burden after your death with a term life insurance policy.

Read More

Guide to Life Insurance Death Benefit vs. Annuity

Life insurance and annuities operate differently. Compare the two below and decide which is the best option for you and your beneficiaries.

Read More

Whole Life Insurance Vs. Term Life Insurance

Whole life insurance pays out a death benefit to the beneficiary when you die and accumulates cash value over time.

Read More