Life insurance is often misunderstood as merely a financial tool used after death. However, its value extends far beyond that. Life insurance serves as a critical financial planning tool that can provide income replacement, wealth transfer, and even investment opportunities.
There are several types of life insurance policies:
- Term Life Insurance: Provides coverage for a specific period (e.g., 10, 20, or 30 years) and pays a benefit if the policyholder dies during the term.
- Whole Life Insurance: Offers lifetime coverage with a guaranteed death benefit and a cash value component.
- Universal Life Insurance: Provides flexible premiums and benefits, along with a savings element that earns interest.
Benefits of life insurance include:
- Financial protection for dependents
- Debt repayment support
- Estate planning and wealth transfer
- Business continuity in case of the death of a key partner
Leading life insurance companies include:
- MetLife (USA) – A global provider with a strong presence in employee benefits.
- Prudential Financial (USA) – Known for its diverse portfolio of insurance and investment products.
- AIA Group (Hong Kong) – Serves millions across Asia with a focus on long-term protection and savings.
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