Supporting the Dream Foundation wants to help you to find a path to your dream. We use the team concept with other life's skills to help you along the way. The team called BAIL is support team that even wealthy people have to succeed. We are discussing the 'I' in the word BAIL. Here is one option that can support and protect your present, your future position in your life for you and your family. I am not a financial advisor, but I can offer information to you so you can be better informed. We discussed insurance as a vehicle that can be used. Let's look at what is insurance and some of the terms.What does life insurance do?

Life insurance provides a benefit to your family, loved ones or entities who may need financial proceeds in the event of your death. It can serve multiple purposes, including covering final expenses, paying off debts, replacing lost income and covering education expenses.

Every life insurance need and financial situation is unique. It's helpful to know the basic information, so you can plan and identify what you need.

Two types of life insurance

Term life insurance

This is a type of policy that has benefits payable within a set time, such as 10 or 30 years, or before a specified age. Typically, term insurance is the most budget-friendly, with costs that stay level during the stated period or gradually increase until the end age.

Term insurance is ideal for paying for things that tend to decrease in cost or impact to the household. For example, debts can be paid down, and kids grow up and become financially independent. You'll be able to save money for bigger goals like retirement because the monthly cost is lower. Term insurance is designed to help pay one-time or short-term expenses if you died unexpectedly.

Permanent life insurance

This is a type of life insurance that can last your entire life. There are different kinds of permanent life insurance like whole or universal life insurance. These types of policies can gain cash value. The cash value can be used in various ways during your lifetime. Or it can do things like increase the death benefit amount.

Permanent insurance is ideal for providing money for things when you eventually die, like funeral costs or an inheritance. It can also help offset costs that your surviving spouse or partner may need with rising health care costs, long-term care or income shortfalls in your retirement years.

Now that you're familiar with term and permanent insurance, it's important to understand some key components of life insurance policies.

Common life insurance terms

Death benefit or coverage amount

This is the amount of money that's paid to your beneficiaries if you were to die while your life insurance policy is active.

Insured

This is the person that the life insurance policy is covering.

Owner

This is the person or entity that owns the life insurance policy. They make the decision to use benefits or riders of the policy. They also decide the beneficiaries and who can cancel or change the policy.

Payor

This is the person or entity that handles paying the premiums for the life insurance policy.

Although uncommon, the insured, owner and the payor can all be different people. Most of the time, the person who owns the policy is also the insured and payor of that policy.

Beneficiary

This is the person, people or entity who will receive the death benefit if the insured dies while the coverage is active.

Guaranteed term period

This is the period that the life insurance policy features remain fixed. This includes premiums and the death benefit amount. During this period, premiums won't increase and coverage amount won't decrease.

When the guaranteed term period ends, the premium could increase or the death benefit can decrease. It depends on your contract.

Premium

This is the amount of money required to keep your policy active. Most policies are paid monthly, quarterly, semiannually or annually. The cost of life insurance can vary depending on the amount and type of coverage you choose.

If you miss a payment, your policy could lapse. This means that coverage isn't active and won't be applied until the balance is paid.

Riders

These are additional benefits or features attached to your policy. Riders offer the policy owner the ability to do different things like convert to a different type of policy or increase the coverage amount. You can use these benefits to customize the life insurance policy for your specific needs.

Riders may or may not add to the premium you pay.

Cash value

This is a component of permanent life insurance policies. Policy types, like whole or universal life, can gain cash value over time. Cash value can work in various ways.

Depending on the policy, it can increase the death benefit amount or contribute to the premium.

Surrender charges

These are fees charged for canceling a permanent life insurance policy during a specific period of time. Policy owners who cancel will get back the surrender value. That's typically the cash value minus any applicable surrender charges.

Medical exam

This is a physical examination that's required for some types of life insurance during the underwriting process. The medical exam may include tests, such as blood work, urine analysis and a review of medical history. The exam results help insurers to set premiums based upon current health status.

Financial situations, lifestyles and medical needs differ from person to person. Your life insurance should reflect your unique needs. It can be helpful to work with a trusted advisor or life insurance specialist to help support your decisions. Thank USAA for providing resources to help get an understanding of the basics of insurances out there. Do your research and understand what whole life and universal life can do to help support and protect you and your dream.