Life Insurance is a contract between an individual and an insurance company, where the insurer promises to pay a designated beneficiary a some of money upon the death of the person.

First of all, it’s NOT about death alone and that’s why I am writing this book to clear the perception issues plaqueing life insurance.
Problems like calibrating or measuring life insurance yields or returns against other investments, failure to be able to see beyond our thoughts, avoidance of claim payment by some insurance companies and their insincerity thereby generalizing them, financial constraints, and religious beliefs,

So, life insurance provides financial protection for your loved ones in the event of your death, helping to cover expenses like funeral costs, debts, and providing for your family’s future financial needs instead of them going online to beg for money because of the scarcity of means of subsistence.

Whole life insurance generates streams of income, you can build a profitable business with it,
It helps to retire early if well- structured and many more as you can see in the book.

The main types are Term Life Institute (covers a specific term) and Whole Life Insurance (covers the entire lifetime).
There are variations and combinations like Universal Life Insurance and Variable Life Insurance.

Any withdrawal you make will typically be tax free up to your basis in the policy.
In most cases, cash value life insurance isn’t taxable in several countries.
Your beneficiaries can receive the death benefit as a lump sum tax-free.

The amount of coverage depends on factors like your income, debts, lifestyle, and the financial needs of your dependents. A common rule of thumb is 5 to 10 times your annual income.
In advanced countries, some people use DIME which is an acronym that stands for Debt, Income, Mortgage, and Education expenses to get their base life insurance figure.

Term Life Insurance provides coverage for a specific term, while whole life insurance covers the entire lifetime and has a cash value component that can grow over time.

Premiums are influenced by factors such as age, health, lifestyle, coverage amount, and the type of policy.
Generally, younger and healthier individuals pay lower premiums.

Some policies allow you to adjust coverage or switch between types. It’s essential to review your policy regularly and make changes as needed.

If you miss payment, your policy may lapse or be converted to a reduced coverage state.
Term insurance covers you for a preset period of time and doesn’t accumulate a cash value. If you miss a term life insurance payment, you might risk having your policy lapse.
Unlike term life insurance, whole life insurance does accumulate a cash value. And if you’ve accrued enough of a cash value to cover the cost of the premium payment you didn’t make, then your policy may be safe.

I’ll counsel here that if you are having financial challenges, put a call across to your carrier immediately to explain things to them for maybe possible payment deferment.

That said, many companies offer a 30-day grace period for missed payments before policy is cancelled.
But if you stop making payments altogether, your coverage might lapse in the course of time.

If it’s whole life, you can withdraw money from your cash value account depending on the age of the policy and your carrier.
You typically have four options: withdrawal, borrow, surrender, or sell it.