The basic premise for Life insurance is simple, it gives you peace of mind while you’re alive, and financial support for your loved ones when you pass. It’s something you should have if there are people in your life depending on you for everyday living expenses, college tuition, or retirement income.

How does it work?
Life insurance is a financial agreement between you and your insurance company. You make regular payments, called premiums, and the insurance company pays your beneficiaries (children, spouse, charity) a tax-free lump sum of money when you pass. For some policies, you get additional benefits to use during your lifetime, like accessing the policy’s cash value. However, accessing the cash value will reduce the policy’s available cash surrender value (CSV) and death benefit. You can also accelerate death benefits and use them for other needs.

Life insurance can make a difference for you and your family, not just financially but emotionally, too. Purchasing a policy sooner, rather than later, will give you more options and flexibility as well as the financial security you’ll need in the future.

How much coverage do I need?
It depends on where you are in your life and who depends on you financially. When you’re starting a family, you probably want to have enough to replace your income, so your spouse or partner and children have the support they need. Later in life, when your kids are grown and your house is paid for, you may want to reassess the amount of life insurance you have and focus on final expenses and other needs, like outstanding debt.

How much does it cost?
The cost of life insurance is based on several factors: your age, gender, health, lifestyle, and occupation. Regardless of your budget, a financial professional will be able to find a plan that covers your needs at a price that you can afford.