FAQ – Life

Who needs life insurance?

Life insurance is appropriate if you have dependents relying on your income or services. Married couples should strongly consider life insurance, and almost all parents with dependent children will need this valuable protection. You may also want coverage if someone owes you money or if you are cosigning a loan.

How much coverage should you have?

Financial experts often suggest a starting point of 5 to 10 times your annual earnings. This would provide your family with sufficient funds to last for several years. The amount of coverage you need depends on a number of factors specific to your family: number of dependents, other assets, mortgage and other debts, benefits through work, etc. We can help you determine the appropriate amount of coverage for you and your family.

What’s the difference between “term insurance” and “whole life”?

As the name implies, “term insurance” provides protection for a specified term, usually 10 to 20 years. Because it is relatively low-cost, term insurance works best for young families who need substantial amounts of insurance at the lowest possible cost. Term insurance has no accumulating cash value, and the premium usually is guaranteed for the term of the policy.

“Whole life” is more expensive because it provides a build-up of cash value in addition to the life benefit. The premium will typically remain steady or even decrease over time, giving you permanent protection. The proposals for whole life insurance spell out the various guarantees and assumptions that affect the cash value buildup.

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