life insurance
Life insurance is a contract where you pay premiums to an insurance company, and in return, they pay a tax-free lump sum (death benefit) to your beneficiaries when you die. It’s mainly used to replace your income, cover debts, pay for kids’ education, or handle funeral costs.
There are two main types: - **Term life**: Covers you for a set number of years (10, 20, 30 years). Cheaper and straightforward. Best for most people. - **Permanent life** (whole life, universal life): Covers you for your entire life and builds cash value you can borrow against. Much more expensive.
How much do you need? A common rule is 10–20 times your annual income, but it depends on your debts, children, spouse’s income, and lifestyle.
Would you like me to explain how to choose the right policy, compare costs, or tell you what questions to ask an agent?
