The Financial Fortune Teller Podcast - How to arrange financial protection for you and your family with Morgan Watkins, Protection Adviser

Life insurance is a contract between you and an insurance company where you pay regular premiums, and in return, the insurer provides a lump sum payment (called a death benefit) to your beneficiaries upon your death. It’s a way to protect your loved ones financially in case you’re no longer around to provide for them. There are a few different types of life insurance: Mortgage & Family Protection Life Insurance: Provides coverage for a set period (like 10, 20, or 30 years). If you pass away during the term, your beneficiaries receive the death benefit. If you outlive the term, there’s no payout. Steps to Set Up Life Insurance: Assess Your Needs: Determine how much coverage you need. This can be based on factors like income, debts, family size, and future expenses (like education or retirement). Choose the Type of Life Insurance: Decide between term and permanent life insurance based on your financial goals and how long you want coverage. Research Providers: Compare different insurance companies to find the best coverage at the best price. Look at their financial stability, customer reviews, and the specifics of the policy. Get a Quote: Request quotes from a few providers, either online or through an insurance agent. Your premium will depend on factors like age, health, occupation, and the amount of coverage you want. Apply for the Policy: You’ll need to complete an application, which will ask about your health history, lifestyle, and sometimes undergo a medical exam, depending on the policy. Review and Sign the Contract: Once you’ve been approved, review the policy details carefully. If you’re happy with the terms, sign the agreement, and you’ll start paying premiums to keep the policy active. Choose Beneficiaries: Designate who will receive the death benefit when you pass away (e.g., spouse, children, other family members, or a trust). You can change beneficiaries later if needed. After setting it up, you just need to continue paying premiums to maintain the policy.