Life insurance and annuities are tools that help you protect your loved ones, plan for the future, and give you peace of mind. Here’s what you need to know, explained in an easy way!

What Is Life Insurance?

Life insurance is like a promise. You pay a company a set amount of money (called a premium), and in return, they promise to give money to your family or loved ones if something happens to you. This money can help with things like:

• Paying bills
• Covering education costs
• Handling daily expenses

How It Works:

• 1.You and the insurance company sign a written agreement called a policy.

• 2.The policy lists all the important details, like who gets the money and what is covered.

3.If something happens to you, your family receives the money, called a benefit.

What Is an Annuity?

An annuity helps you plan for the future by providing a steady income, often for retirement. It’s like saving for a rainy day, but you get paid back over time!

How It Works:

• 1.You give money to a company over time or all at once.

• 2.Later, they pay you a set amount of money regularly—kind of like getting a paycheck.

3.This money can help with retirement or long-term goals.

What Should I Know About Insurance Policies?

Here are some important parts of an insurance policy:
1.Declaration Page:

• This is the first page of your policy.
• It lists important details like who is covered, what is protected, and how long the policy lasts.

2.Insuring Agreement:

• This explains what the company promises to do in exchange for your payments.

3.Exclusions:

• This part lists what is NOT covered, so you know ahead of time.

4.Conditions:

• These are the rules you must follow, like paying your premiums on time. If you don’t, the company might not pay when you need it.

Why Are These Important?

• Life insurance gives your family financial security.
• Annuities give you financial stability for your future.
• Both are about preparing for life’s surprises and making sure you’re ready for anything.

Tip: Always read the policy carefully to understand what is covered and what isn’t. If you have questions, ask for help!


Now that you know the basics, you’re one step closer to making smart choices for your future and your family.