With life insurance, you can take care of your family, even after you’re gone

Life insurance is by no means a requirement, but it can be a very wise and affordable way to make sure your family would be financially comfortable if you were to die.

While we can’t directly answer this question, it may help for you to consider what your family’s situation would be if you were to die tomorrow.

Would they be able to maintain their standard of living without your income? Would they be able to pay outstanding loans? Would they be able to cover funeral expenses? Would they be able to pay for the future plans you wanted to help out with?

A single person with no dependents may be able to skip life insurance, but we usually recommend coverage to any person who plays a role in supporting a family unit.

Term insurance provides coverage for a certain time period, often 10 to 30 years, typically for a level premium. If the insured passes away during the term, their beneficiaries receive a death benefit payment.

Permanent (whole) insurance offers lifetime coverage including both a (tax free) death benefit, which is the compensation paid to the beneficiary once the insured passes away, and a cash benefit, which is a forced savings available to the insured while he or she is still alive.

Term insurance is significantly cheaper than permanent insurance, and is usually what we recommend for most of our clients.

But before you select an insurance policy, you will want to make sure you fully understand the differences between term and permanent insurance to evaluate which best meets your needs.To learn more, read Term vs. Permanent Life Insurance: Which is Better for Me?

Generally, as soon as you have a family you play a role in supporting, or if you have debts that will leave anybody with a financial burden. The rule of thumb with life insurance is the younger and healthier you are when you buy it, the cheaper it is.

But there are also some more specific times that are better than others to get a life insurance quote.Learn more by reading When are the Best and Worst Times to Get Life Insurance?

Many people think they can’t afford life insurance, but the good news is, life insurance premiums have come down significantly in the last several years.

The cost of life insurance can vary significantly depending on the type of life insurance, the age and health of the applicant, and the amount of coverage being purchased.

But let’s look at a realistic example to give you a better idea.

If a 40-year-old healthy male were looking into acquiring a $50,000 life insurance policy, this is an estimate of what he might pay for each type of policy:

• 20-year term policy: $107/year
• Universal life (permanent): $505/year
• Whole life (permanent): $1,036/year