Savings and investments
Assets you already own.
Insurance
Life insurance pays a death benefit when the insured person dies while covered. Its purpose is to address a financial need created by that death.
Insurance 101 • 07
If the insured person dies while covered, the policy can pay a death benefit to the beneficiary under its terms.
The amount of insurance should connect to what the death would change financially for other people.
Assets you already own.
A contract that can create a death benefit if the insured dies while covered.
Someone with dependants and large financial obligations may have a different need from someone whose death would create little financial loss for others.
Remember this
Start with who would be financially affected and what they would need.
Lesson complete