(NAPSA)—Life insurance is oJ- ft / ie J the foundation of financial security for you and your family. It protects your financial resources against the uncertainties of life so you can plan for the future. The main purposeof life insurance is to provide cash to your family after you die. The money your dependents receive, known as the “death benefit,” is a vital financial resource. It can help pay the mortgage, run the household and ensure that your dependents aren't burdened with debt. Choosing a life insurance product is an important decision, and you should understand your needs and the options available to you. The American Council of Life Insurers (ACLI) suggests you start by evaluating your family’s needs. Gather your personal financial information and estimate what your family will need after you're gone. One rule of thumbis to buy life insurance equal to 10 times your annualgross income. There are two basic typesoflife insurance: term and permanent. Term insurance provides pro- tection for a specific period of time, typically from one to 30 years, and pays a benefit if you die during the term. The premium may remain constant throughout the term or increase each year. Some term insurance policies can be renewed when you reach the end of the term, but the premium rates will generally increase. Permanent life insurance pro- vides lifelong protection. As long as you pay the premiums, the pol- icy will remain in force, and the death benefit will be paid. Permanent policies also offer a cash value, which you can use as a long-term savingstoolor ascollateral when borrowing against the policy. Permanent policies are designed and priced to keep over a long period of time. Somepolicies offer an accelerated benefits rider, which allows you to receive the proceeds of your policy before you die if you have a catastrophic illness or require nursing homecare. A licensed life insurance agent can help you find a policy that meets your needs. For more information aboutlife insurance, access ACLI’s con- sumer guide, “What You Should Know About Buying Life Insurance,” available on www.acli.com.
