What is Life Insurance?

Life insurance is a contract between a person and an insurance company. The policyholder pays premiums, and in return, the insurance company pays a tax-free death benefit to the chosen beneficiaries when the insured person passes away.

The purpose is simple: financial protection and peace of mind.

Life insurance can help loved ones cover:

  • Funeral and burial costs
  • Mortgage or rent
  • Daily living expenses
  • Debts (credit cards, loans)
  • Children’s education
  • Lost income 

Types of Life Insurance

1. Term Life Insurance: 

What it is:
Coverage for a specific period (10, 20, or 30 years).

Best for:

  • Income replacement
  • Young families
  • Mortgage protection
  • Affordable coverage

Key points:

  • Lower cost
  • No cash value
  • Pays out only if death occurs during the term

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2. Whole Life Insurance:

What it is:
Permanent coverage that lasts your entire life.

Best for:

  • Final expense planning
  • Long-term financial security
  • Guaranteed coverage

Key points:

  • Fixed premiums
  • Builds cash value
  • Guaranteed death benefit

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3. Universal Life Insurance

What it is:
Permanent life insurance with flexible premiums and benefits.

Best for:

  • People wanting flexibility
  • Long-term planning with cash value growth

Key points:

  • Adjustable premiums
  • Cash value tied to interest rates
  • Lifelong coverage if funded properly

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4. Final Expense Insurance

​What it is:
Smaller whole life policies designed to cover end-of-life costs.

Best for:

  • Seniors
  • Funeral and burial expenses

Key points:

  • Lower coverage amounts
  • Easier approval
  • Fixed premiums for life
     

How People Use Life Insurance?

✔ Income Protection

Replaces lost income so families can maintain their lifestyle.

✔ Final Expenses

Covers funeral, burial, cremation, and medical bills.

✔ Debt Protection

Pays off mortgages, car loans, and credit cards.

✔ Wealth Transfer

Leaves money to children, grandchildren, or loved ones tax-free.

✔ Cash Value Access

Some policies allow borrowing against cash value for:

  • Emergencies
  • Education
  • Home repairs
  • Retirement supplement

Contact

Telephone: 215-664-7313
E-mail: Kervens@legacywellinsurance.com

Office hours

Monday – Friday
10am – 5pm

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