Life Insurance 101 | Beginner’s Guide to Coverage & Benefits

Life insurance isn’t exciting, but it’s one of the most important financial protections you can have. If your income disappeared tomorrow, would your family be able to cover the mortgage, bills, and daily expenses? Life insurance answers that question before it becomes a crisis. It’s a safety net that ensures your loved ones can maintain stability even after the unexpected.

Life insurance is a contract where you pay premiums, and in return, the insurer pays your beneficiaries a lump sum (death benefit) when you pass away. This money can:

• Cover funeral expenses

• Pay off debts

• Replace income

• Fund education or future goals

Main Types of Life Insurance:

• Term Life – Affordable coverage for a set number of years (10–30). Great for covering major debts or income replacement.

• Whole Life – Permanent coverage with a cash value that grows over time. Higher premiums but lasts for life.

• Final Expense – Smaller policy for end-of-life costs like funerals and medical bills. Easy approval, low coverage amounts.

• Indexed Universal Life (IUL) – Permanent coverage with flexible payments and cash value growth tied to a market index.

How Much Coverage Do You Need? A common rule is 10–15× your annual income. Factor in debts, monthly expenses, and future plans like college or retirement for your spouse. Example: A $60,000 annual income often means $600,000–$900,000 in coverage.

Avoid These Mistakes:

• Waiting too long to buy (rates rise with age)

• Buying too little coverage

• Forgetting to review your policy after life changes

Real-Life Example: Mark, 35, bought a $500,000 20-year term policy. Three years later, he passed away unexpectedly. His family used the payout to pay off their home, stay in their neighborhood, and cover expenses without financial strain.

Bottom Line: Life insurance isn’t just a policy—it’s peace of mind for the people you love most. The best time to buy is now, while rates are low and your health is good.

📞 Protect your family’s future today. Contact Imperial Insurance Team at (984) 296-4977 or info@imperialinsuranceteam.com for a free, no-obligation quote.