Life insurance, explained.
Safeguarding your future.
Life insurance safeguards what matters most—your family. Beyond protection, it’s a lasting gift of care, responsibility, and the legacy you choose to leave.
A quick guide about insurance.
Term life insurance
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Coverage: Protects you for a set period (10, 20, or 30 years).
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Cost: Usually more affordable than permanent policies.
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Purpose: Ideal for temporary needs like a mortgage or supporting your family during specific years.
Permanent life insurance
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Coverage: Lasts your entire life.
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Cash value: Many policies build cash value over time, which you can borrow against.
Types of permanent life insurance:
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Whole life: Lifelong coverage with fixed premiums and guaranteed cash value growth.
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Universal life: Flexible premiums and death benefits, adjustable to your needs.
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Variable life: Cash value invested in sub-accounts like mutual funds—potentially higher growth but higher risk.
Other options:
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Final expense insurance: Covers burial or end-of-life costs, often with no medical exam.
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Simplified & guaranteed Issue: Simplified may require a health questionnaire; guaranteed issue is available regardless of health, usually with a waiting period.
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Group life insurance: Provided through employers or organizations, offering death benefits to members.
Source: Liberty Mutual Insurance
Determining your needs.
Life insurance is not one-size-fits-all. Factors like age, health, lifestyle, occupation, medical history, coverage amount, and policy type help determine the best fit for you.
Life uncovered.
Myth 1: Life insurance is only for older people.
Truth: The best time to buy is often when you’re young—premiums are lower and coverage is easier to obtain.
Myth 2: Life insurance is too expensive.
Truth: Most people overestimate the cost. There are many policy options to fit different budgets.
Myth 3: I only need life insurance if I have dependents.
Truth: Life insurance can cover debts, final expenses, or other obligations, even if no one relies on your income.
Myth 4: Employer coverage is enough.
Truth: Employer plans are helpful but may not provide sufficient coverage, and they end if you leave your job.
Myth 5: Stay-at-home parents or unemployed adults don’t need life insurance.
Truth: Caregivers contribute valuable work that would be costly to replace.
Myth 6: I can only insure myself.
Truth: You can also purchase policies for a spouse or children if you have a regular income and aren’t a minor.
Myth 7: Life insurance payouts are heavily taxed.
Truth: In most cases, beneficiaries receive proceeds tax-free.
Myth 8: Pre-existing conditions disqualify me.
Truth: Special policies exist for those with health conditions, though rates may be higher.
Myth 9: I can’t make changes once a policy is issued.
Truth: Many policies allow updates without canceling or switching companies.
Myth 10: Savings make life insurance unnecessary.
Truth: Relying solely on savings may not provide enough financial security for loved ones.
