Do I Need Life Insurance?

Life Insurance provides financial security for your loved ones in the event of your untimely death, ensuring they can maintain their standard of living and cover essential expenses such as mortgage payments, education, and daily living costs. It acts as a safety net, offering peace of mind that your family will be protected during difficult times.

Rules of Thumb

  • Broadly, there are two types of life insurance: term and permanent.

    Term: lower premiums for coverage that lasts a specified amount of time (10,20, 30 years, for ex.)

    Permanent: tends to cost more, but the policy typically lasts your entire life and builds up cash value.

  • It is always worth a conversation and consideration but generally we recommend clients obtain term insurance. We believe there are more effective investment options available to you than the cash value of permanent insurance.
  • You are likely asking yourself, “How much coverage do I need?” Below is a quick calculator from Policy Genius that will give you an idea of adequate coverage.
  • Not everyone needs life insurance. If you are single with no dependents – life insurance may not be appropriate for you.

Links

How much insurance do I need calculator: https://www.policygenius.com/life-insurance/how-much-life-insurance-do-i-need

Further reading: https://www.nerdwallet.com/article/insurance/how-does-life-insurance-work

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