What is life insurance? Do I really need it? These are common questions our financial coaches get asked. Life Insurance is an insurance policy (contract) with an insurance company. In exchange for premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to your chosen beneficiaries upon the insured’s death. Life insurance is incredibly helpful and sometimes crucial for families as it can help support your family and the loved ones you leave behind. Read on to learn different reasons life insurance is beneficial to have and how to go about choosing the right policy for you.
What do you want your life insurance to accomplish?
  • Pay off debt
  • Provide income replacement
  • Pay off mortgage
  • Provide education funding
  • Pay final expenses
Calculate the amount needed
  • Calculate the amount you need from step one
  • Your death benefit should be equal to a multiple of seven to ten times your annual pre-tax income
  • Stay-at-home parents should note that families with young children tend to need more than ten times for future expenses
Choose a life insurance agent
  • Find an agent with a broker dealer that represents multiple companies to find one that works best for your family’s needs
  • Life insurance agents must be licensed with the state
Take Action
  • Purchase the life insurance policy
  • Use automatic monthly drafts from a bank account to avoid any lapses in payment which can terminate your life insurance protection
  • Have a will or trust as that is the only way your wishes can be carried out