What Does Life Insurance Cover?

Life insurance is a type of insurance that pays a benefit to the policyholder’s designated beneficiary (usually a spouse, children, or other family members) upon the policyholder’s death. The purpose of life insurance is to provide financial protection to the policyholder’s loved ones in the event of their death, to help cover expenses such as funeral costs, outstanding debts, and living expenses.

It’s important to carefully review the terms of a life insurance policy to understand what is and is not covered. Some policies may have exclusions or limitations on coverage, such as exclusions for death due to certain causes like suicide or high-risk activities.

Do I Need Life Insurance?

Do you have dependents who rely on your income? If you have a spouse, children, or other family members who rely on your income to pay bills and meet their financial needs, you may want to consider getting life insurance to protect them in the event of your death.

Do you have outstanding debts or mortgages? If you have debts or mortgages that would be difficult for your family to pay off if you were to die, life insurance could help ensure that they are taken care of.

Do you want to leave money to your loved ones or charitable causes? Life insurance can be used to leave a financial legacy for your loved ones or to support charitable causes that are important to you.