What is life insurance?

life insurance

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Do you really need life insurance as a young adult? In this lesson we’ll explore what life insurance is, the types of life insurance and how much it costs.

What is life insurance?

life insurance

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  • Overview
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What is life insurance?

life insurance

Do you really need life insurance as a young adult? In this lesson we’ll explore what life insurance is, the types of life insurance and how much it costs.

What is Life Insurance?

 

Insurance is a “just-in-case” for something that is well, guaranteed to happen at some point. Your life insurance policy would pay out tax-free to your beneficiaries– which could be your family, your friends, favorite charity or organization you’re close to!

That way your loved ones can still afford housing, food, bills, and pay for your funeral. Note: funerals can be EXPENSIVE.

What are the Types of Life Insurance 

 

There’s two types of Life Insurance: term life insurance and permanent life insurance. 

 

Term covers a set amount of time. For example, that you’ll go belly up  within the next twenty years. Whereas permanent– you guessed it — covers you from now until when you eventually peace out.

 

Term will be the best price because it only covers a period of time but permanent will be the most coverage, since it’s well, permanent…meaning that there is a guarantee that the benefit will be paid no matter what when you peace out, as long as you pay your premium each month!

 

How Much Does Life Insurance Cost? 

The cost of the policy really depends on a lot of factors, including how risky it is to insure you based on your health, age, and hobbies. But overall it would be somewhere around $20 or $30 bucks a month if you’re young and healthy. Whole life insurance could be a little more expensive than term life insurance.

what's in this lesson?

Do you really need life insurance as a young adult? In this lesson we’ll explore what life insurance is, the types of life insurance and how much it costs.

Transcript

What is Life Insurance?

 

Insurance is a “just-in-case” for something that is well, guaranteed to happen at some point. Your life insurance policy would pay out tax-free to your beneficiaries– which could be your family, your friends, favorite charity or organization you’re close to!

That way your loved ones can still afford housing, food, bills, and pay for your funeral. Note: funerals can be EXPENSIVE.

What are the Types of Life Insurance 

 

There’s two types of Life Insurance: term life insurance and permanent life insurance. 

 

Term covers a set amount of time. For example, that you’ll go belly up  within the next twenty years. Whereas permanent– you guessed it — covers you from now until when you eventually peace out.

 

Term will be the best price because it only covers a period of time but permanent will be the most coverage, since it’s well, permanent…meaning that there is a guarantee that the benefit will be paid no matter what when you peace out, as long as you pay your premium each month!

 

How Much Does Life Insurance Cost? 

The cost of the policy really depends on a lot of factors, including how risky it is to insure you based on your health, age, and hobbies. But overall it would be somewhere around $20 or $30 bucks a month if you’re young and healthy. Whole life insurance could be a little more expensive than term life insurance.

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