The following commonly asked questions will give you some guidance on term and permanent life insurance, how to choose a financial representative and how to choose an insurance company from the American Council of Life Insurance. You can also find excellent information about life insurance from LIFE , the Life and Health Insurance Foundation for Education, and news about the industry at the National Underwriter web site.
Life insurance is an essential part of financial planning.
One reason most people buy life insurance is to replace income that would be lost with the death of a wage earner. The cash provided by life insurance also can help ensure that your dependents are not burdened with significant debt when you die. Life insurance proceeds could mean your dependents won't have to sell assets to pay outstanding bills or taxes. An important feature of life insurance is that there is no federal income tax on proceeds paid to beneficiaries. Before buying life insurance, you should assemble personal financial information and review your family's needs.