Reader’s Question:

My friends have Colorado life insurance and they are insisting that I should get one. I’m still undecided whether I should purchase one or not since I am still clueless about this (and I think I’m still young to get one). Can you tell me basic information about life insurance?

Lea

Colorado Springs, CO

First let me just give you a little information about what life insurance is. In layman’s term, it is a kind of insurance wherein if the person insured dies, the insurance company will pay that person’s beneficiaries.

Also, it is an agreement between the life insurance company and policy owner wherein the policy owner agrees to pay the premium for the life insurance coverage. Meanwhile, the insurance company agrees to pay certain amount of money once the policy owner dies to his or her beneficiaries. For the part of beneficiary (or beneficiaries) he or she (or they) will get the benefits once the policy owner dies.

The best way to know whether you need to get Colorado life insurance is to ask yourself whether there are people who financially depend on you. These people could be your wife, children, relatives, or even business partners. Also, if you have financial obligations or mortgage, life insurance can also help you settle your debts.

Remember, with life insurance, it assures you that the needs of your family can be met whatever happens to you. For more information about life insurance, you may also wish to contact the Colorado Division of Insurance.