Life insurance
If someone depends on your income, life insurance makes sure they're taken care of if something happens to you. Here's how to think about it.
Types of life insurance
Most people choose term or whole life. Universal life is another lifelong option with more flexibility.
Term life
Covers you for a set number of years, like 10, 20 or 30. If you pass away during that time, your family receives the payout.
- The most coverage for the lowest price
- Good for covering years when people depend on you, like while you're raising kids or paying a mortgage
- Some policies can be converted to permanent coverage later
Whole life
Covers you for your entire life, as long as you pay the premiums, which usually stay the same.
- Builds cash value over time that you may be able to borrow against
- Costs more than term for the same amount of coverage
- Often used for final expenses or leaving money to family
- Universal life
- Lifelong coverage with flexible premiums and coverage amounts. It can build cash value, and you can adjust it as your life changes.
How much do you need?
There's no single right number. A good amount covers what your family would need to keep going without your income. Think about:
- Years of income your family would need to replace
- Your mortgage or rent and other debts
- Childcare and future education costs
- Funeral and final expenses
- Savings and other coverage you already have
I'll help you add it up so you're not paying for more than you need, or leaving your family short.
What affects the price
- Your age. The younger you are when you buy, the less it usually costs.
- Your health and medical history
- Whether you use tobacco
- How much coverage you want
- How long the coverage lasts
Many policies don't require a medical exam, and some can be approved within days.
Life insurance questions
Do I need life insurance?
If anyone depends on your income, like a spouse, kids or a business partner, or you have debts like a mortgage, life insurance helps make sure they're taken care of if something happens to you.
Isn't the life insurance from my job enough?
Often not. Employer coverage is commonly one or two times your salary, and it usually ends when you leave the job. Your own policy stays with you no matter where you work.
Can I get life insurance if I have health problems?
Often, yes. Prices depend on your health, and some conditions raise the cost, but there are policies with simplified questions or no medical exam. I'll help you find what's available to you.
Do I need a medical exam?
Not always. Many policies today approve people based on a health questionnaire and records checks, with no exam. Larger coverage amounts are more likely to need one.