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Understanding Life Insurance Benefits

Life insurance has several benefits, especially for people who have family members or other dependents who rely on them financially. When the policyholder dies, the insurance company pays a death benefit to the policy's beneficiaries. This payout can be used in any way the beneficiary sees fit, but is commonly used to:

  • Pay for funeral and burial costs
  • Replace loss of income and help your family pay for bills and mortgages

  • Act as an inheritance to chosen loved ones, business benefactors or charities 

  • Pay estate taxes

  • Build cash value (in the case of permanent life insurance)

Types of Life Insurance

The two main types of life insurance are term life insurance and permanent life insurance.

  • Term life insurance is temporary life insurance that typically spans five to 30 years. Term life insurance is usually less expensive than permanent insurance, which makes it a popular choice among younger buyers looking for lower costs. Term life can often be renewed at a higher premium when it expires, or can sometimes be converted to a whole life policy. 
  • Permanent life insurance provides coverage for your whole life and has fixed premiums, as long as you pay premiums on time and in full. Permanent life insurance also builds cash value. 

What Size Policy Should I Buy?

Although it's hard to predict exactly how much life insurance you'll need because everyone's situation is different, a good rule of thumb is to multiply your salary by 10 to get an average for your policy coverage needs.


How much you'll pay for a life insurance policy depends on several factors, including your:

  • Age
  • Health
  • Policy type
  • Other Factors

Speak With an Agent

A licensed agent can help you better understand your options and match you with a policy that works for your needs and budget. Speak with an agent now at 1-800-966-7169.


This is an advertisement for life insurance.

Applications for life insurance may be subject to acceptance by insurer. Issuance of the policy may depend upon answers to health questions. Rates and coverage amounts depend upon the carrier selected. Your policy may be subject to underwriting approval. You will receive only the benefit amount in the policy issued.

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