Life insurance is a contract between the policy owner and the insurer, where the insurer agrees to pay a sum of money to a beneficiary or beneficiaries upon the death of the policy owner. In return, the policy owner pays a premium at regular intervals. There are three basic types of life insurance:

1. Ordinary life insurance, a policy that remains in force for the policyholder’s lifetime.

2. Whole life insurance, the oldest kind of cash value life insurance that combines protection against premature death with a savings account. Premiums are fixed and guaranteed and remain level throughout the policy’s lifetime.

3. Variable life insurance, a policy that combines protection against premature death with a savings account that can be invested in stocks, bonds, and money market mutual funds at the policyholder’s discretion.

Contact the Phil Hager Insurance Agency to find out more about your options for life insurance at Smith Mountain Lake.