About Life Insurance

Video Transcript

"OK, this is John Pinelli, financial representative talking to you today about life insurance. So what's the most beneficial or important type of life insurance or the best life insurance to buy? This is a question that people often ask themselves. Well the best life insurance is the life insurance that's in force when you die because that will provide you coverage. So there's two basic types of life insurance. There's term, there's permanent or whole life. Term provides you coverage for a specified term or period of time whether it be 10 years, 20 years or to age 80 or to some other obtained age. These policies are often cheap, they provide you with a great deal of coverage for the least amount of premiums and if you die during that specified period, your family or beneficiaries will receive that benefit. However should you live past the term of your policy and die, your family will not receive any sort of benefit. So that's where the advantages of say a whole life or permanent life insurance policy will come into value. This policy will cover you for your entire life and often times the amount of insurance that you have will continually increase year by year by year which is a nice feature of the policy as well. These policies are typically quite a bit more expensive than term but they also offer some cash value in the effect of like a savings account that builds within the policy. Now if you encounter a situation where you should need some money or come up across some hard times, your able to withdraw that cash value through a loan on the policy if you want to keep the policy coverage in force or you can just take the entire amount of cash value out of the policy and nullify the policy. Those are several of the options that you have with the whole life policy, they generally offer the insured quite a bit more leverage and ability to do things that they would want to do, different flexibility options as well. So this has been John Pinelli, financial representative talking to you today about life insurance."