Life Insurance
Life insurance may be one of the most important purchases you'll ever make. In the event of a tragedy, life insurance proceeds can help pay the bills, continue a family business, finance future needs like your children's education, protect your spouse's retirement plans, and much more. If you're considering securing you and your family’s financial future, we would be happy to review your current situation and offer a few ideas on how you can protect it!
Types of Life Insurance
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TERM INSURANCE
Term life insurance is one of the most affordable types of life insurance and is designed to provide coverage for a specific period of time, known as the term. It generally pays a death benefit only if the insured passes away during the term. This type of coverage is commonly used to meet temporary financial needs that may decrease or disappear over time, such as income replacement during working years, paying off a mortgage, or covering expenses until children complete their education. Because term life insurance does not build cash value, it is typically more cost-effective when initially purchased.
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FINAL EXPENSE
Final expense life insurance is designed to help cover the costs that often remain after someone passes away. These expenses may include funeral and burial costs, medical bills, credit card balances, loans, and other outstanding obligations. Without coverage, these costs can place a financial burden on surviving family members. Final expense insurance helps ensure that funds are available to handle these expenses, offering peace of mind and financial protection for loved ones during a difficult time.
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UNIVERSAL LIFE
Universal life insurance provides permanent life insurance coverage with greater flexibility than whole life insurance. It combines a death benefit with a cash value component that can grow over time. Premiums are adjustable within certain limits, allowing the policy owner to shift money between the insurance and savings portions of the policy based on changing financial needs. The accumulated cash value may be used to help pay premiums if needed. Unlike whole life insurance, the cash value growth in a universal life policy can vary and is adjusted periodically.
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WHOLE LIFE
Whole life insurance is a permanent life insurance policy that offers lifetime coverage with level premiums that generally remain the same throughout the life of the policy. In addition to providing a guaranteed death benefit, whole life insurance includes a cash value component that builds over time. This cash value can be accessed through loans or withdrawals, depending on the policy terms. Whole life insurance is often used as part of a long-term financial strategy, combining protection with steady, tax-deferred cash value growth.
Life Insurance Guide
Life insurance helps protect your family financially if something unexpected happens to you. It can provide a payout to your loved ones to help cover expenses, replace income, and maintain their lifestyle.
While life insurance can seem complex, the idea is simple: it’s designed to provide long-term financial security and peace of mind for you and your family.
How Life Insurance Works
A life insurance policy is a contract between you and an insurance company. You pay a premium, and in return, the policy provides a tax-free death benefit to your beneficiaries if you pass away while the policy is active.
Every life insurance policy includes a few key components:
The policyholder (the person who owns the policy)
The insured (the person covered under the policy)
The beneficiary (who receives the payout)
The premium (the cost of the policy)
Do I Need Life Insurance?
Not everyone needs life insurance, but many people benefit from having coverage. Life insurance can help your family handle financial responsibilities and maintain stability if you are no longer there to provide income.
It can be especially important if others depend on you financially or if you have ongoing expenses such as a mortgage, debt, or education costs.
Who Needs Life Insurance?
Life insurance may be important if you fall into any of these categories:
Homeowners
Helps cover mortgage payments and protect your home.
Income Earners (Breadwinners)
Provides income replacement to support your family’s daily living expenses.
Parents
Helps cover childcare, education, and living costs for your children.
Married or Partnered Individuals
Protects your partner from financial strain and shared debts.
Individuals with Debt
Helps ensure debts like loans or credit cards don’t burden your family.
Business Owners
Can help protect your business and cover financial obligations.
Those Planning for Final Expenses
Helps cover funeral and end-of-life costs.
Types of Life Insurance
Life insurance generally falls into two main categories: term and permanent.
Term Life Insurance
Term life insurance provides coverage for a specific period of time, typically 10 to 30 years. It is usually the most affordable option and is designed to protect your family during key financial years.
If you pass away during the term, your beneficiaries receive a payout. If the term ends, the coverage expires.
Permanent Life Insurance
Permanent life insurance provides lifelong coverage and includes a cash value component that can grow over time.
Whole life and universal life are common types of permanent insurance. These policies offer long-term protection and can be used as part of financial or estate planning strategies.
What Type of Life Insurance Is Best for Me?
Choosing between term and permanent life insurance depends on your goals, budget, and how long you need coverage.
Term insurance may be a good option if you:
Need coverage for a specific period of time
Want a more affordable option
Are focused on income protection or debt coverage
Permanent insurance may be more suitable if you:
Want lifelong coverage
Are planning for long-term financial or estate goals
Are interested in building cash value over time
What If I Already Have Life Insurance Through Work?
Employer-provided life insurance can be helpful, but it may not provide enough coverage. Many workplace policies offer coverage equal to one to two times your annual salary, which may not be enough to fully support your family.
Additionally, employer coverage often ends if you leave your job. For this reason, many people choose to have an individual policy alongside their workplace coverage.
How Much Life Insurance Do I Need?
The amount of life insurance you need depends on your financial situation and long-term goals.
A simple way to estimate your coverage is:
Debt + Income + Mortgage + Education = Total Coverage Needed
This approach helps account for:
Outstanding debts
Income replacement
Housing costs
Future education expenses
Some people also use a general rule of thumb, such as 10 times their annual income, as a starting point.
Getting Started
Choosing the right life insurance policy starts with understanding your needs and comparing your options. The right coverage can help protect your family and give you confidence about the future.
Before choosing a plan we want to be sure you know the difference between your many options.