Life insurance gives the people who depend on you money to carry on if you die. The first real decision is what kind of policy fits your plans.
Term life insurance
A term policy covers you for a set period, such as 10, 20 or 30 years. If you die during that term, your beneficiaries receive the death benefit. If you outlive the term, the coverage ends.
Term insurance usually costs less at the start, so many families use it to cover a need with an end date, like a mortgage or the years until children are grown.
Permanent life insurance
Permanent policies, such as whole life, are designed to last your entire life as long as premiums are paid. Many also build cash value over time, which you may be able to borrow against.
The tradeoff is cost. For the same death benefit, permanent coverage generally costs more than term coverage, and the rules for cash value differ by policy.
Questions that help you decide
- Who depends on your income, and for how long?
- What debts would your family need to pay?
- Do you want coverage for a set time, or for life?
- What premium can you comfortably keep paying?
Review your coverage as life changes
Marriage, a new child, a new home or a new business can all change how much coverage makes sense. Check your beneficiaries at the same time, because they decide who receives the money.
We can walk you through the options in plain language, with no pressure to decide on the spot.
