Help protect your family’s future. Enter your zip code to get your free quote today!

Get Your Free Quote

Why Have Life Insurance?

There are many important reasons why you should have life insurance. From mortgage payments to planning for your estate, your loved ones could potentially face serious financial difficulties after you die if you don't have any form of life insurance. Learn more about the type of protection you can get from a life insurance policy.

Life Insurance Coverage Protects Against Risk

Your need for life insurance will vary depending on your age and responsibilities. However, if anyone relies on you for income or other needs, you should have a life insurance policy in place to protect them.

If any of the following circumstances apply to you, you may want to consider purchasing life insurance.

  1. You’re considering starting a family
  2. You have substantial student debt
  3. You’re a homeowner and have a mortgage
  4. You or your significant other are working and contributing to the household income
  5. You need to pay tuition and other educational expenses for your child or other dependent
  6. You’re a stay-at-home spouse or parent that provides valuable domestic services that would otherwise likely cost the family unit a lot of money
  7. You don't want to leave your family without the means to pay for your funeral expenses

Types of Life Insurance Policies

People buy life insurance for many different reasons. There are various different types of policies to choose from, but there are two main types of life insurance — term life and permanent life.

Term Life

If your primary reasoning for purchasing life insurance is to protect the lifestyle of your family or dependents if you die, a term life insurance policy could be the type of plan you need. A term policy offers coverage for a specific period of time, or "term." If the policyholder dies during the term — and he or she has paid the premiums on time and the policy is in good standing — the beneficiaries listed in the policy will receive a death benefit.

Terms typically last between one and 30 years, and the death benefit amount can vary greatly depending on how much the policyholder wants.

A term life insurance policy is typically less expensive than permanent life insurance plans*.

Permanent Life

If you want a policy that stays in force for your entire life and builds cash value over time, you may want to consider buying permanent life insurance policy. This type of policy has an investment component and accrues cash value. The premiums for a permanent policy may be more expensive than a term policy.

How Much Life Insurance Do You Need?

Once you’ve decided that life insurance is of considerable value to you, the next step is determining how much coverage you need. First, look at your current financial situation and figure out what your loved ones will need in the years to come.

The ideal life insurance policy will account for long term financial obligations such as paying off your mortgage or sending your children to college, and also help cover your more immediate monetary needs. The amount you take out on your policy should be enough to fill the gaps between what you already have and what your loved ones will need without your financial support.

In addition to your immediate needs, you should also take into consideration:

  • Funeral and burial costs
  • Any outstanding debt
  • Other dependents, such as siblings, parents or grandparents who rely on your income
  • Organizations and charities you'd like to leave money to
  • Estate taxes
  • Inflation

Get a Free Quote

Speak with a licensed agent by calling 800-966-7169 to find the right plan for you.

 

---------- 

Sources:

The Balance: https://www.thebalance.com/who-needs-life-insurance

The Balance: https://www.thebalance.com/choosing-term-life-insurance-low-cost

The Balance: https://www.thebalance.com/whole-life-insurance-choices

Nerd Wallet: https://www.nerdwallet.com/blog/insurance/how-much-life-insurance-do-i-need/

 

*Applications for insurance may be subject to acceptance by insurer. Rates and coverage amounts will depend upon the carrier selected.

 

Help protect your family’s future. Enter your zip code to get your free quote today!

Get Your Free Quote

Related Information

Do I Need Life Insurance If I Have No Dependents?

You may not have any dependents, but you still should get life insurance. Here's how a policy can be beneficial for you.

Read More

Do You Need Life Insurance to Buy a House?

You don't have to have life insurance with your mortgage, but life insurance can help your loved ones make house payments after you die.

Read More

What Is Level Term Life Insurance?

Level term life insurance policies have predictable and level premiums. Learn more about how you can help protect your family's financial future.

Read More

Why Do I Need Life Insurance?

If you are starting a family, or own a home or business, a life insurance policy can help ensure your loved ones are protected if you die unexpectedly.

Read More

Understanding Variable Life Insurance

Variable life insurance is a form of permanent life insurance. It can offer you coverage for the rest of your life and includes a cash value savings component.

Read More

Supplemental Life Insurance Can Work With Your Employer’s Plan

Is your employer’s life insurance coverage enough for you and your family? If not, here’s why you should consider a supplemental life insurance policy.

Read More

What is a Life Insurance Policy? Benefits and Basics

What is life insurance and how does it help families in the event of your death? It can help pay for the cost of funeral expenses, lost wages, debts, and more.

Read More

Can I Have Multiple Life Insurance Policies?

Life insurance companies do not prohibit you from having multiple life insurance policies, so you can have two or even more.

Read More

Why Get Life Insurance?

Life insurance can help you protect your loved ones financially in the event of your death. Learn more about why it matters.

Read More