Life Insurance in the USA: Why It Matters and How to Choose the Right Policy
What Is Life Insurance? Life insurance is a financial contract that guarantees a payout to your beneficiaries when you pass away. This payout, also known as a death benefit , helps protect your loved ones from financial hardships such as funeral expenses, unpaid debts, or loss of income. Why Life Insurance Is Important in the United States In the U.S., where the average funeral costs range from $7,000 to $12,000 , life insurance helps families avoid debt and maintain financial stability. It’s a crucial part of any long-term financial plan, especially for: Parents with young children Homeowners with a mortgage People with dependents or aging parents Business owners Types of Life Insurance in the USA Understanding your options is key to making the right decision. Here are the most common types of life insurance available in the U.S.: 1. Term Life Insurance Coverage lasts for a specific period (10, 20, or 30 years) More affordable than permanent life insu...