LIFE INSURANCE
- WHO NEEDS IT?

If someone depends on you financially, chances are you need life insurance.
Life insurance provides cash to your family after your death. This cash (known as the death benefit) replaces your income and can help your family meet many important financial needs like daily living expenses, mortgage payments and college savings. What's more, there is no federal income tax on life insurance benefits.

If you find yourself in the list below you need life insurance.

You're Married
You're a Single Parent
Your Kids Are Self-supporting and Your Mortgage is Paid Off
You're Retired
You're a Small Business Owner
You're Single

Just about any life event you can imagine will have an impact on your life insurance needs.

Most Americans need life insurance. If you died tomorrow, how would your loved ones fare financially? Would they have the money to pay for your final expenses (e.g., funeral costs, medical bills, taxes, debts, lawyers fees, etc.)? Would they be able to meet ongoing living expenses like the rent or mortgage, food, clothing, transportation costs, healthcare, etc? What about long-range financial goals? Without your contribution to the household, would your surviving spouse be able to save enough money to put the kids through college or retire comfortably?

The truth is, it's always a struggle when you lose someone you love. But your emotional struggles don't need to be compounded by financial difficulties. Life insurance helps make sure that the people you care about will be provided for financially, even if you're not there to care for them yourself.

Term Life Insurance vs. Permanent. How to make a right decision?

There are many kinds of life insurance, but they generally fall into two categories: term insurance and permanent insurance.

Term insurance is designed to meet temporary needs. It provides protection for a specific period of time (the "term") and generally pays a benefit only if you die during the term. This type of insurance often makes sense when you have a need for coverage that will disappear at a specific point in time. For instance, you may decide that you only need coverage until your children graduate from college or a particular debt is paid off, such as your mortgage.

In contrast, permanent insurance provides lifelong protection. As long as you pay the premiums, and no loans, withdrawals or surrenders are taken, the full face amount will be paid. Because it is designed to last a lifetime, permanent life insurance accumulates cash value and is priced for you to keep over a long period of time.

One of the most common questions people have about life insurance is, term or permanent? The answer is: it depends - on a number of factors, including how long you need the coverage, how much you can afford, how much risk you can tolerate and how much flexibility you need.

To help you gain a better understanding of which type of insurance might be right for you, we've created a decision guide that walks you through the selection process.