Your credit union can assist you in obtaining insurance for your mortgages and loans. The main purpose of life insurance is to provide your survivors with an income after your death. To decide on the amount of coverage you need, a comprehensive review of your current and projected financial situation is necessary. Your personal life insurance policy will be only one element to consider. The savings, investments, real estate or group insurance coverage you hold may reduce the level of coverage you require.
Term insurance provides protection for a specified and limited period.
If you die within that period, your beneficiary receives the policy benefit. If you outlive the term of the policy, the insurance expires and no benefits or rebates are paid. Premiums are based on your age when you take out the policy and the amount of insurance coverage. Whole life or permanent insurance provides protection for the rest of your life, and benefits are payable when you die. Whole life policies accumulate cash value.