The concept of life insurance
At its most basic level, the purpose of life insurance is to provide peace of mind and help protect your loved ones from financial hardship in the event of your unexpected passing.
In fact, 84% of Americans believe that having an adequate amount of life insurance is important to their financial peace of mind.¹ This is because the proceeds from a policy can help provide for the needs of people who rely on you. These needs can include things like day-to-day living expenses, paying off a mortgage, or funding a college education.
There are two basic types of life insurance – term insurance and permanent life insurance. Term insurance, as the name suggests, helps provide protection for a set period of time, typically 10, 15, 20, 25 or 30 years. Permanent life insurance lasts for one’s entire lifetime as long as premiums are paid. Amica Life offers both term and permanent life insurance.
Edward: I’ll use me as an example — my wife and two children – if I were to pass I want to keep my wife and children in the same lifestyle they are accustomed to. We have a home. Knowing the kids will have to go to school eventually. If I were to pass tomorrow, God forbid, I want to put them in a position to be financially stable in my absence.
Brenda: I really look at it as a gift. Not only can it be financial security if it’s a spouse and an income being lost, it’s also making sure that people just don’t have to worry about that piece of their life.