According to Life Happens, LIMRA and a the 2017 Insurance Barometer Study, one in three people say they don’t have enough life insurance. 

Life Insurance should be considered protection against the unknown as it can financially help protect the people you care about most. It is like a giant security blanket as it provides for your loved ones when you are no longer here to care for them yourself due to your untimely passing.

Life Insurance can help to:

• Fund your children’s future education Offset the cost of childcare whether you are a parent who must enter the workforce or if you’re a stay-at-home mom or dad 
• Pay for medical bills and funeral expenses
• Pay monthly bills, such as rent, mortgage or a car payment
• Pay off any outstanding debt, including credit card bills and student loans
• Provide a retirement account for your husband, wife or domestic partner or an inheritance for your children.

How Does Life Insurance Work?

A life insurance policy is a contractual agreement of protection between you and an insurance company. In the event of your untimely passing, the life insurance company pays a person or organization of your choosing, known as a beneficiary, a pre-determined amount of money.

As the insured, you may select one or multiple beneficiaries and they may be any person or organization of your choosing. The amount your beneficiary will receive is based on the amount of coverage you have on your policy. The more you buy, the more they will receive and the best part is, according to current laws, the benefit amount they will receive will be considered income tax-free.

Who Needs a Life Insurance Policy?

While some people wait for a major life event to buy the protection they need – having a child, getting married, buying a new home – the most important thing about life insurance is to purchase it before you actually need it.

Don’t fall into the trap of avoiding a life insurance policy by being intimidated by it. Although they can seem to be difficult to understand with all their rules and technicalities, we all know having a life insurance policy is essential to helping protect your loved ones. The harsh reality is if anyone in your life is financially dependent on you, whether it is your wife, children, an aging parent or even a disabled sibling, life insurance for you is a must. 

Are you still uncertain if you need a Life Insurance policy? See if you fit into any of these categories:

• You are a business owner
• You are a homeowner
• You are a single parent
• You are retired
• You are the primary income earner in your household
• You have a husband, wife or domestic partner
• You have a spouse and children
• You have outstanding student loans or credit card debt

If you fall into one of these categories, it may be time to seriously consider buying a life insurance policy.

How Much Will Life Insurance Cost?

The price you pay for life insurance is determined by a number of factors, including the type of policy and coverage amount you choose. Some other factors that influence your premium include your age, driving record, health status, medical history and lifestyle.

Now that you have a better understanding of life insurance, you can explore the options for your life insurance policy.