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Life Insurance

Life insurance is a contract between the policy owner and insurance company in which the following occurs: the policy owner or payer agrees to pay a defined amount (premium); the insurance provider agrees to pay a sum of money upon the death of the insured person; and the beneficiary – person or persons designated by the policy owner – will receive benefits upon the death of the insured.

Your need for life insurance depends on your age and responsibility. If you have financial dependents such as children or a spouse, having a life insurance policy can help protect them in the event of your death when they can no longer depend on your earnings.

There are two types of life insurance – term and permanent. Term insurance is the most affordable and provides protection for a specific time period. A permanent life insurance policy usually has a higher premium, but the policy provides protection for the entire life of the policyholder.

Before you purchase a life insurance policy, there are a few things you should consider:

  • Decide on how much life insurance you need, for how long, and what you can afford to pay
  • Learn what kinds of policies will provide what you need and pick the best one.
  • Do not buy life insurance unless you intend to stick with your plan. It may be very costly if you quit during the early years of the policy.
  • Remember, Louisiana law allows a 10-day “free look” period to decide whether to keep a life insurance policy.