Life in the Brazos.com

Matthew Chalmers

The Financial Foundation

Life Insurance and You: Know the Basics

By Matthew E. Chalmers, Northwestern Mutual Financial Network

Life insurance should be a fundamental part of anyone's financial future. It provides financial confidence for your entire family should the unthinkable happen. But beyond that, how does one go about looking for the right life insurance for their needs. This is where knowing the basics becomes critical.

In general, life insurance offers protection for a pre-determined amount money for your loved ones, or anyone you designate, after you've passed away. The person you designate is called the "beneficiary." Life insurance proceeds could be used to pay off debt (credit cards, mortgages and other loans), funeral costs, estate taxes, college tuition, and other current or future expenses.

There are two general types of life insurance: term or whole-life insurance. Term, which covers you for a specified period of time such as 20 to 30 years, pays a benefit only if death occurs within that time period. Whole-life policies, on the other hand, protect people as long as they live, and in many instances, have a built in cash value that can be paid out or borrowed against during one's lifetime.

When considering purchasing life insurance, it's important to think through the financial resources you need to leave your family so they can maintain a comfortable lifestyle in case you die. Part of the process is identifying your assets, financial obligations and future expenses.

To learn more about life insurance as well as find a variety of other articles available to you and your family, I encourage you to visit the article library found on my website at http://www.nmfn.com/matthewchalmers/learnctr--articles--article_library, or feel free to contact me at (979) 846-0668 or matthew.chalmers@nmfn.com with any additional questions.

# # #

Matthew E. Chalmers is a Financial Representative with Northwestern Mutual Financial Network the marketing name for the sales and distribution arm of The Northwestern Mutual Life Insurance Company (NM), Milwaukee, Wisconsin, its affiliates and subsidiaries. Financial Representative is an insurance agent of NM based in College Station, TX.