Life insurance is one of the most practical ways to protect the people you love. It provides financial support to your family or other dependents in the event of your untimely death, helping them maintain their standard of living when you’re no longer there to provide for them. From paying off a mortgage, covering education expenses, to simply keeping up with everyday bills, life insurance steps in as a financial buffer during one of life’s most difficult moments. It brings peace of mind today, knowing your loved ones will be cared for tomorrow.
If you’re married, have children, or others who rely on your income, life insurance isn’t just a financial tool—it’s an act of care and responsibility. And even if you don’t currently have dependents, certain situations—like co-signed debt or future family plans—may still warrant a closer look at coverage options.
Two Primary Types: At a high level, life insurance comes in two main forms: term and permanent. Understanding the difference is key to choosing the right fit for your needs.
Start with Term: For most people, term insurance is the better starting point. It offers coverage for a specific period (like 10, 20, or 30 years) at a significantly lower cost than permanent insurance. We typically recommend term coverage because it’s more affordable, and we believe your investment dollars can often be put to better use elsewhere rather than building cash value within a policy.
Permanent Insurance: While more expensive, permanent life insurance lasts your entire life and builds a cash value component over time. It can serve a purpose in more complex financial or estate planning scenarios, but it’s not usually necessary for most individuals or families.
How Much is Enough? A common question is, “How much coverage do I actually need?” There’s no one-size-fits-all answer, but there are helpful tools to get you started. We recommend this simple calculator from Policy Genius to give you a personalized estimate based on your income, debts, family needs, and future goals.
You May Not Need It: Life insurance isn’t right for everyone. If you’re single, have no dependents, and no one would face a financial burden if you passed away, you may not need coverage right now. But your situation can change—so it’s always worth re-evaluating over time.
