Why Do You Need Life Insurance?
There are several reasons why you should purchase life insurance. Firstly, life insurance provides financial security for your loved ones in case of your unexpected death. The death benefit can help your family cover expenses such as funeral costs, outstanding debts, and living expenses. Secondly, life insurance can help you save money for the future. Some types of life insurance policies, such as whole life and universal life insurance, accumulate cash value over time, which can be used for various purposes such as paying for education expenses or retirement. Finally, life insurance can provide peace of mind knowing that your loved ones will be taken care of in case of your unexpected death.
What is the Right Kind of Life Insurance?
All policies are not the same. Some give coverage for your lifetime and others cover you for a specific number of years. Some build up cash values and others do not. Some policies combine different kinds of insurance, and others let you change from one kind of insurance to another. Some policies may offer other benefits while you are still living. Your choice should be based on your needs and what you can afford.


Term Life Insurance
This type of insurance provides coverage for a specific period, usually between 1 to 30 years. If the policyholder dies during the term, the beneficiary receives a death benefit. Term life insurance is typically less expensive than other types of life insurance policies.
Permanent Life Insurance
Permanent life insurance is a type of insurance that provides coverage for your entire life. It also has a savings component that accumulates cash value over time, which can be used as collateral for loans or withdrawn. There are three types of permanent life insurance: whole life, universal life, variable life & indexed universal.
- Whole Life Insurance - This type of insurance provides coverage for the policyholder's entire life. The policy builds cash value over time, and the beneficiary receives a death benefit when the policyholder dies. Whole life insurance is more expensive than term life insurance.
- Universal Life Insurance - This type of insurance offers flexibility in terms of premiums and death benefits. The policyholder can adjust the premiums and death benefits as their needs change. Universal life insurance also builds cash value over time.
- Variable Life Insurance - Variable life insurance is a type of permanent life insurance that allows you to invest the cash value in a variety of investment options. The death benefit and cash value can fluctuate based on the performance of the investments.
- Indexed Universal Life Insurance - This type of insurance offers a death benefit and cash value that is linked to the performance of an index, such as the S&P 500. The policyholder can adjust the premiums and death benefits as their needs change.


How Much Do You Need?
Here are some questions to ask yourself:
- How much of the family income do I provide? If I were to die early, how would my survivors, especially my children, get by? Does anyone else depend on me financially, such as a parent, grandparent, brother or sister?
- Do I have children for whom I’d like to set aside money to finish their education in the event of my death?
- How will my family pay final expenses and repay debts after my death?
- Do I have family members or organizations to whom I would like to leave money?
- Will there be estate taxes to pay after my death?
- How will inflation affect future needs?
As you figure out what you have to meet these needs, count the assets you already have such as: any group insurance from your employer, veteran’s insurance, Social Security and pension plan survivor’s benefits, savings, investments, real estate and personal property.