Why Should I Have Life Insurance?

• Replaces lost income
• Covers everyday living expenses
• Keeps your loved ones financially secure
   

• Pays off mortgages, loans, and credit cards
• Handles funeral and medical expenses
   

• Helps with estate planning and inheritance
• Keeps family businesses running smoothly
• Provides tax-free money when it’s needed most
   

• Certain policies grow cash value you can use later
• Acts as an extra safety net in retirement
   

• Pass on wealth to children or grandchildren
• Support a favorite charity or cause

• You can relax knowing your family is protected—no matter what.

A well-designed life insurance policy helps protect the people who rely on you. When deciding how much coverage is appropriate, take time to evaluate the financial needs your family would have in your absence. Consider the following: 

• Current Debt:  Your policy should be structured to eliminate outstanding obligations like mortgages, car loans, and other debts, so your family isn’t burdened financially. 

• Income Replacement: One of the biggest factors for life insurance is for income replacement, which will be a major determinant of the size of your policy. If you are the primary income earner for your family, your policy should be large enough to replace your income and provide additional protection against inflation.

• Future Obligations:  Beyond income replacement and debt protection, your policy can help fund important future expenses — such as college tuition or final arrangements — so your family is fully supported. 

Term life insurance is often used to cover temporary needs such as income replacement and outstanding debt. Permanent policies, such as whole life, may be better suited for final expenses, legacy planning, or long-term financial goals.

Once you determine the appropriate coverage amount, the next step is selecting the policy type and structure that best aligns with your overall financial plan.

You may also wonder whether other family members should be insured. As a general rule, life insurance is most appropriate when the loss of that individual would create a financial hardship. If a spouse or partner contributes to the household income, it’s wise to evaluate their coverage needs using the same thoughtful process.