What is life insurance and do I really need it?

Quick Answer:

Life insurance provides a tax-free payout to your loved ones if you die, helping cover things like bills, funeral costs, and future expenses. Most adults with financial responsibilities need it.

Full Explanation

How Life Insurance Works

You pay a monthly premium. If you pass away while the policy is active, your beneficiaries receive a death benefit (a lump sum payout).

Types of Life Insurance
  • Term: Lasts for a set number of years (10, 20, 30). Most affordable.
  • Whole: Lasts your entire life and builds cash value. More expensive.
  • Universal / Variable: Flexible or investment-linked options.
Why You Might Need It
  • You have kids or dependents
  • You want to cover debts or mortgage
  • You run a business or have co-signers
  • You want to leave a legacy or donation

HooValu Tip

You can upload your life insurance policy to your Vault and name who should access it when the time comes.

Next Steps / Related Articles

  • [How to choose the right life insurance policy]
  • [What’s the difference between term and whole life?]
  • [Where to store your insurance documents]
Tags: life insurance, financial planning, beneficiaries, HooValu Vault
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