Why You Need Life Insurance

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Why Do I Need Life Insurance?

Life insurance is a tool that’s used when planning for your family’s well-being if you pass away. Think about the loss of income and debt payments your family would have to make if you were no longer there to provide an income. Knowing that your family will be able to keep your home and have money to pay for future expenses will provide peace of mind if you were to pass away.

Understanding the Types of Life Insurance

There are two types of life insurance policies: term life and whole or universal life. Below is some more information on each type:

Term Life

  • Term Life covers you for a selected amount of time

  • This policy will typically replace your income for your family and, depending on the amount of coverage you select, will help your family pay off your current debts

  • Term life monthly premiums are less expensive than whole life due the expiration date of the policy

  • Sometimes these policies don’t require a medical exam

Whole or Universal Life

  • This policy covers you for the remainder of your lifetime if policy conditions are met

  • Whole life will help replace your income for your family and pay off any debts

  • Many whole life policies offer a cash payout that you can borrow against or cash out later in the policy

  • Whole life premiums are much higher than term policies for the same amount of coverage, but they don’t expire

Before Starting a Life Insurance Quote Comparison

Below, you’ll find a few things you need to consider before starting your life insurance quote comparisons.

  • The total amount of debt you have, including loans, credit cards, mortgages and anything else you’re making regular payments on

  • Your family’s medical history

  • Your current salary and occupation

  • Additional medical information regarding your height, weight, blood pressure, use of tobacco, and cholesterol levels

Use our comparison tool to help you estimate the amount and cost of life insurance you may need to keep your family protected. You can learn more about life insurance in our insurance guide.