Life and health insurance are essential components of a well-rounded financial plan, providing financial security and peace of mind for individuals and their families. Life insurance is a contract between a policyholder and an insurer, where the insurer provides a tax-free lump sum payment (the death benefit) to beneficiaries upon the insured’s passing, helping to cover expenses such as mortgage payments, debts, education, and daily living costs.

There are different types of life insurance, each serving specific financial needs:

• Term Life Insurance provides coverage for a set period (e.g., 10, 20, or 30 years) and is often the most affordable option. It is ideal for covering temporary financial obligations, such as a mortgage or children’s education, ensuring protection during critical years.
• Participating (Par) Whole Life Insurance is a permanent policy that offers lifelong coverage while accumulating cash value over time. It also allows policyholders to receive dividends, which can be used to enhance the policy, reduce premiums, or be taken as cash. This type of insurance is commonly used for estate planning, wealth transfer, and building long-term financial security.