Consumer Guide To Life Insurance

A CONSUMER'S GUIDE TO LIFE INSURANCE
from North Carolina Department of Insurance

All life insurance is not the same. Life insurance can be divided into two basic categories “term” and “permanent”. Term life insurance provides coverage for a specific period of time, while permanent life insurance provides coverage for the insured person’s entire life.

Both types pay what is known as a death benefit, which is the amount of money paid out upon the insured’s death. This money is paid to the person or persons designated by the insured. These people are known as the beneficiaries.

This manual explain the features of term and permanent life insurance policies and also compare the two so you can better understand what each type of coverage offers. Later in this guide you will find a worksheet to help you evaluate your needs and choose a policy type that meets those needs.