Life insurance constitutes a contractual agreement between an insurer and an individual. Upon death, whereby the insurer undertakes to pay a predetermined sum of money to the individual’s beneficiaries upon death, with the proceeds serving to settle debts, defray funeral expenses and provide for dependents.

Life insurance is crucial for guaranteeing that your family and loved ones are financially secure in the event of your untimely death. It can assist in covering living expenses, debts, and other financial commitments, providing peace of mind for you and your family.

Term Insurance: Provide coverage for a specific period such as 10, 20 or 30 years. If the insured dies during this term, a death benefit is paid to the beneficiaries.

Permanent Insurance: Is a type of life insurance that provides lifetime coverage for the insured, provided premiums are paid. It typically comprises a death benefit payable upon the insured’s death and cash value savings component that accumulates interest and tax-deferred growth over time.

Whole Life Insurance: Fixed premiums with guaranteed cash value growth over time. Whole life insurance is either participating or non-participating. Participating whole life plans provide dividends to policy holders that can be used to increase the cash value, purchase additional coverage, or be paid out in cash.

Universal Life Insurance: One of the unique features of Universal Life policy is its flexibility in premium payments and its broad range of investment options.

The amount of life insurance required is contingent upon various factors, including your income, debts, and number of dependents. Typically, the coverage will range from 10-25 times the annual income.

Premium rates and cost are typically determined by factors such as age, gender, health status, lifestyle choices (e.g., smoking), avocation, and the type of coverage selected. Typically, younger and healthier individuals are charged lower premiums.