Why You Need Life Insurance
Life insurance provides financial protection for your loved ones if you pass away. It can help cover funeral costs, replace lost income, pay off debts, and ensure your family maintains their quality of life.
Term vs Whole Life Insurance
| Feature | Term Life | Whole Life |
|---|---|---|
| Coverage Period | 10-30 years | Lifetime |
| Monthly Cost | $15-$50 | $100-$500+ |
| Cash Value | No | Yes (builds over time) |
| Best For | Temporary needs, budget-conscious | Lifetime coverage, wealth building |
| Premiums | Fixed for term | Fixed for life |
Types of Life Insurance
Term Life Insurance
Most affordable option. Covers you for a specific period (10, 20, or 30 years). Best for young families.
Whole Life Insurance
Permanent coverage with cash value that grows tax-deferred. Higher premiums but lifetime protection.
Universal Life Insurance
Flexible premiums and death benefit. Cash value earns interest based on market performance.
No-Exam Life Insurance
Quick approval without medical exam. Slightly higher premiums but instant coverage.
Average Life Insurance Costs by Age
| Age | $250K Term (20yr) | $500K Term (20yr) | $1M Term (20yr) |
|---|---|---|---|
| 25 | $12/mo | $18/mo | $28/mo |
| 35 | $15/mo | $23/mo | $38/mo |
| 45 | $28/mo | $48/mo | $85/mo |
| 55 | $65/mo | $118/mo | $215/mo |
How Much Life Insurance Do You Need?
A common rule of thumb is 10-12 times your annual income. Consider these factors:
- Outstanding debts (mortgage, car loans, credit cards)
- Number of dependents and their ages
- Future expenses (college tuition, spouse retirement)
- Funeral and end-of-life costs ($10,000-$15,000 average)
- Current savings and existing coverage
Life Insurance for Special Situations
- Seniors over 70: Guaranteed issue policies available, no health questions
- Diabetics: Coverage available, rates depend on control level
- Smokers: Higher rates, but coverage available
- Pre-existing conditions: Many carriers offer coverage