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      • What is life insurance and why do I need it?
      Life insurance is an important tool that should be a part of everyone's plan to protect against financial loss at death. In exchange for payment of premiums, an insurance company agrees to pay your beneficiary an amount of money based on the death benefit of your policy. There are many good reasons to purchase life insurance and the type of coverage you need depends on the amount needed to cover both anticipated and unanticipated expenses for your family and loved ones. Life insurance can be used to pay funeral expenses, replace lost income, pay off debts or loans, and create a fund for your children's or grandchildren's education, or care for dependents or loved ones with special needs.

      What are the different types of life insurance?
      Life insurance typically falls into three categories: term life, whole life and universal life.

      Term life is the least expensive type of policy and builds no cash value. It pays only if death occurs during the term of the policy, which is usually one to thirty years. A term life policy is designed with only one function: upon your death, it pays a lump sum to your designated beneficiary.

      Whole life insurance, also known as permanent life insurance, provides coverage throughout the insured's lifetime, has a death benefit and builds cash value on a tax-deferred basis, and the insurer cannot cancel the policy as long as you pay your premiums on time. Whole life insurance premiums are larger than term life premiums, because they fund the cash value in addition to buying insurance coverage.

      Universal life insurance is also permanent life insurance and is similar to whole life insurance. These policies also provide coverage throughout the insured's lifetime, have a death benefit and build cash value on a tax-deferred basis. However, unlike whole or term life, universal life is a more flexible product. Because the death benefit, premiums and cash value are treated as separate components, as the policyholder's circumstances change, the components can be reviewed and altered.

      How much life insurance do I need?
      How much insurance you need depends on your particular circumstances. How much would it take to replace your annual salary for your surviving spouse and family and allow them to maintain their standard of living? Would you like to create an inheritance for dependents or make a charitable contribution? Do you have enough savings to pay your final expenses? One method is to multiply your annual gross income by a multiple of years in order to determine how much basic income is needed to cover living expenses for your beneficiary in the event of your death. The amount of life insurance you need requires careful planning and consideration. It is a good idea to work with an insurance professional to determine your needs.

      Should a single person purchase life insurance?
      Almost everyone can benefit from the right life insurance product. A single person should consider the following options: younger singles can benefit by purchasing life insurance before age and certain health considerations become a factor in qualification. If you have dependents and would like to leave an inheritance or provide money for a college fund; or perhaps you would like to leave a charitable donation to your favorite organization, you might want to consider purchasing life insurance. Even if there is no one depending on you for financial support, in the event of your death, a life insurance policy can help ensure that you have enough money to pay outstanding debts or pay for funeral and other final expenses so that your family would not be financially burdened.

      What is a rider?
      Riders provide additional benefits that can be added to a basic policy often for an additional cost.

      What are the types of riders that are available?
      The types of riders vary, but some of the most common are:

      Accelerated death benefit riders allow for early payment of a portion of the death benefit should the insured become terminally ill, as defined by any specific policy.

      Accidental death benefit riders provide an additional death benefit in the event that the insured dies in an accident.
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