Life Insurance
Life Insurance for the People Who Depend on You
Life insurance can help provide financial protection for the people and responsibilities that matter most to you. The right coverage starts with understanding what you want to protect, how long protection may be needed, and what fits your budget and long-term plans.
What Can Life Insurance Help Protect?
Life insurance can serve different purposes at different stages of life.
The amount and type of coverage should reflect the people, obligations, and goals that are important to you.
Income for Your Family
Life insurance can help replace income that family members depend on if you are no longer there to provide it.
Mortgage and Other Obligations
Coverage can provide funds that may help with a mortgage, loans, or other financial responsibilities.
Children and Dependents
Life insurance can help provide financial support for children, a spouse, aging parents, or others who depend on you.
Final Expenses
Coverage may help family members handle funeral costs and other expenses that can arise at the end of life.
Future Goals
Life insurance can help provide resources for goals such as education, family support, or other long-term commitments.
A Legacy
Some people use permanent life insurance as part of a plan to leave money to family members, charities, or other beneficiaries.
Life insurance can help with these needs, but it does not guarantee that every financial obligation will be fully covered.
Understanding the Main Types of Life Insurance
Life insurance generally falls into temporary and permanent forms of coverage.
Each works differently, and the right choice depends on what the coverage is intended to accomplish.
Term Life Insurance
Term life insurance provides coverage for a specified period, such as 10, 20, or 30 years. It is often used when the need for protection is temporary, such as during working years, while raising children, or while paying a mortgage. Term insurance generally does not build cash value.
Whole Life Insurance
Whole life insurance is permanent coverage designed to remain in force for life as long as required premiums are paid. It generally includes a guaranteed death benefit, guaranteed cash-value accumulation, and premiums that are established when the policy is issued, subject to the terms of the policy.
Universal Life Insurance
Universal life insurance is permanent life insurance that can provide flexibility in premiums and death benefits within the limits of the policy. It can also build cash value based on the policy\u2019s credited interest and charges. Because funding and policy performance matter, it is important to understand how the policy is designed and what is required to keep it in force.
Indexed Universal Life Insurance
Indexed universal life insurance is a form of permanent life insurance in which interest credited to the policy\u2019s cash value may be linked to the performance of an external market index, subject to the policy\u2019s participation rates, caps, floors, and other terms. The policyholder is not directly invested in the index. Policy charges and the amount of funding can affect cash value and the policy\u2019s ability to remain in force.
Temporary or Permanent Coverage?
Temporary Protection
Term Life Insurance
Term insurance may make sense when the financial need has a defined time period. Examples may include protecting income while children are growing up, covering a mortgage, or providing additional protection during working years.
Key considerations:
- Coverage period
- Death-benefit amount
- Affordability
- Whether protection may still be needed after the term ends
- Available conversion or renewal provisions
Permanent Protection
Whole Life, Universal Life, and Indexed Universal Life
Permanent life insurance is designed for needs that may continue throughout life. Depending on the policy, it may also accumulate cash value. Permanent coverage generally costs more than comparable term coverage and should be evaluated based on the purpose of the policy, expected funding, guarantees, flexibility, and long-term affordability.
Key considerations:
- Lifetime coverage needs
- Premium structure
- Guarantees
- Cash-value features
- Policy charges
- Flexibility
- Long-term affordability
Which Type May Fit Your Situation?
There is no single type of life insurance that is right for everyone.
A useful starting point is to identify what you are trying to accomplish before selecting a product.
How Long Do You Need Coverage?
A temporary need may point toward term insurance, while a need expected to continue throughout life may call for considering permanent coverage.
What Needs to Be Protected?
Consider income, family obligations, debts, business responsibilities, final expenses, and other financial commitments.
What Can You Comfortably Afford?
A policy only works as intended if it remains affordable enough to keep in force.
Do You Need Flexibility?
Some permanent policies provide more flexibility in premium payments or death-benefit structure than others.
Is Cash Value Important to You?
Certain permanent policies build cash value, but the costs, guarantees, crediting methods, and long-term policy performance should be understood before choosing one.
What Guarantees Matter to You?
Different types of life insurance provide different levels of contractual guarantees. Those differences should be considered alongside flexibility and cost.
How Much Life Insurance Do You Need?
There is no universal formula that determines the right amount of life insurance. Rules of thumb based only on income can overlook important parts of a person's financial situation.
A thoughtful review may include:
The goal is not simply to buy the largest policy available. It is to identify an appropriate amount of protection for the need you are trying to address.
Have Life Insurance Through Work?
Employer-provided life insurance can be valuable, but it should be reviewed as part of your overall protection rather than automatically treated as your complete life insurance plan. Coverage amounts may be limited, and coverage may change or end when employment changes.
Questions worth asking include:
- ?How much coverage do I actually have?
- ?Does the coverage continue if I leave my employer?
- ?Is the benefit enough for the people who depend on me?
- ?Do I need coverage that I control independently of my job?
Life Insurance Isn't One-Size-Fits-All
Age, health, family responsibilities, existing coverage, financial obligations, budget, and long-term goals can all affect which options deserve consideration. Policy features can also vary significantly between insurance companies.
That is why choosing life insurance should start with the need rather than with a particular product.
How Fair & Kind Helps
Our job is to help you understand the choices and find coverage that fits the reason you are buying life insurance in the first place.
Understand What You Want to Protect
We start with the people, responsibilities, and financial needs the coverage is intended to protect.
Determine the Type of Coverage to Consider
We help you understand the differences between term and permanent life insurance and which approaches may fit the need.
Compare Appropriate Options
We review available policy features, costs, guarantees, and important tradeoffs in plain language.
Help You Apply
Once you decide how you want to proceed, we help you through the insurance application process.
Frequently Asked Questions
Common questions about life insurance, answered in plain English.
Protecting the People You Love Starts With a Conversation
We can help you understand your life insurance options and determine what type and amount of coverage may fit your needs.
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