Do you need life insurance

Do you need life insurance?
Life insurance can help your family and loved ones deal with the financial impact of your demise.
The death benefit paid from a life insurance policy is a tax-free, lump-sum total that can be used to:
• replace the monthly income so the family can maintain their standard of living.
• For kids future and other dependents.
• pay for cremation expenses.
• pay off your loans or debts or arrears.
• Donate to charity.
You may also choose to leave the money to your estate or to a trust.
Term Life Insurance:
Term life insurance pays a death benefit if the individual insured dies within a specific period of time or before you reach a certain age.
The length of your coverage can be either for:
• A period of time, such as a term of 10 or 20 years
• Until an insured individual reach a certain age, such as 65 years old
If you die within the duration of the policy, your recipients or beneficiaries will be paid the death benefit. Once the term ends, the coverage ends and your recipients won’t receive any payment.
Term insurance policies usually have no cash value or cashback schemes. This means you can’t lend against your policy and you won’t get any cash back value if you terminate your policy. Few term policies can be renewed.
Commonly, your insurance company will start your premiums, or the fees you pay, for the length of the term. Your premiums may surge when you renew the policy. For example, premiums would rise every five years on a five-year renewable policy.
If you fail to pay your premiums, your insurance company may terminate your policy.
Term life insurance premiums are usually less expensive than permanent life insurance premiums when you first buy the policy.