Life Insurance – An Introduction

A life insurance policy is a commodity that you can invest in on a monthly basis, which will pay out a lump sum in the event of your death, to a person or persons whom you have nominated as beneficiaries.  A beneficiary is someone who will benefit financially form the payout of the insurance policy.  Investing in an insurance policy is one of the most important things you can do for your partner or your family, as it insures that your loved ones will be financially secure in the event of your untimely death.

There are two main types of insurance policies:


Term Life Insurance is put in place to protect the financial interests of family members after the death of the main breadwinner in the family.  The sooner you take out a term life insurance policy, the less you will be paying in monthly installments, as these payments are determined by the amount of coverage you choose, the term you decide on, as well as your age and your health.  The older you are when you start a term life insurance policy, the more you will pay per month.

This type of insurance policy is therefore ideal for younger families and can also cover additional expenses such as funeral costs.  A term life insurance policy will have a set period of time of either ten or twenty years, and sometimes even 30 years and do not retain a cash value at the end of the term.


This type of insurance policy is similar to a term life insurance policy with a maturity date, but offer a cash value at the end of the term.  Monthly payments are higher and coverage is generally lower than on term life insurance policies.

A qualified insurance agent will be able to explain the terms and conditions of life insurance and assist you in choosing the best policy for your particular situation.

About Michele

Michele Andrea Bowen has been a financial consultant for just shy of 22 years. Her client base ranges from individuals, to families, to small and medium sized businesses. Her expertise extends from daily money management, to insurance, to planning for retirement, as well as managing finances in retirement.


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