Intro to Insurance
Buying Life Insurance
OK, earlier you said that most people have auto, home, and health insurance. But I’ve been hearing a lot about life insurance lately. What do I need to know about that?
A life insurance policy benefits your loved ones in the event of your death. You take out a policy for a pre-determined amount of coverage, over a set number of years—20 years, for example—and if you die during that time, the insurance company pays your beneficiaries. This is called term life insurance.
What happens the longer you wait to take out life insurance?
Your premium goes up
Your deductible goes up
Your premium goes down
Your deductible goes down
Which of the following does NOT influence the cost of life insurance?
Your overall health
Whether you smoke
How many children you have
How old you are