Life Insurance

Let's get this out of the way: nobody likes talking about life insurance because nobody wants to think about dying. But here's the reality - if other people depend on your income, you need life insurance. It's that simple.

Life insurance isn't for you (you'll be dead, after all). It's for the people you leave behind who still have bills to pay, mortgages to cover, and kids to put through college. It's about making sure your death doesn't also destroy your family's financial future.

The Basic Idea

You pay premiums, and if you die while the policy is in force, the insurance company pays your beneficiaries a lump sum of money. They can use that money however they need to - paying off debt, covering living expenses, funding college, or just having financial security while they figure out their next steps.

The key is having enough coverage to actually make a difference. A $10,000 policy might cover your funeral, but it's not going to replace years of lost income.

Term vs. Permanent: The Big Decision

Term Life Insurance: You buy coverage for a specific period - usually 10, 20, or 30 years. Premiums are low, especially when you're young and healthy. If you die during the term, your beneficiaries get the money. If you don't die, the coverage expires and you get nothing back.

Think of it like car insurance - you pay for protection, hope you never need it, and if you don't use it, that's actually a good thing.

Permanent Life Insurance (Whole Life, Universal Life, etc.): More expensive, but it builds cash value you can borrow against and provides coverage for your entire life. The insurance company invests part of your premium and pays you returns.

Sounds good, but the investment returns are usually pretty mediocre, and the fees are high. Most people are better off buying cheaper term insurance and investing the difference in retirement accounts.

How Much Life Insurance Do You Actually Need?

A good starting point is 10-12 times your annual income, but that's just a rough guideline. Here's what you should really think about:

Replace your income: How much money would your family need each year, and for how many years?

Pay off major debts: Mortgage, car loans, credit cards - anything that would burden your family.

Future expenses: College costs for kids, your spouse's retirement if they're depending on your income.

Final expenses: Funeral costs, medical bills, estate settlement expenses.

Don't forget that your spouse might need time to grieve, retrain for work, or find new employment. Life insurance can give them that breathing room.

Who Actually Needs Life Insurance?

If you have dependents: Spouse, kids, or anyone else who relies on your income - you need life insurance.

If you have debt: Especially a mortgage or other loans that would fall to your family.

If you're a stay-at-home parent: Your spouse would need to pay for childcare, house cleaning, and all the other things you do for free.

If you own a business: Life insurance can help with business succession planning or buy-sell agreements.

Who Probably Doesn't Need Much (If Any)?

Single people with no dependents: If you die, nobody else is financially impacted. Maybe just enough to cover final expenses.

Wealthy retirees: If you have enough assets to support your surviving spouse, life insurance might not be necessary.

Kids: Life insurance on children is mostly a waste of money. Insure the people who earn the income, not the people who consume it.

The Application Process (Fair Warning)

Getting life insurance requires a health exam and detailed questions about your lifestyle, finances, and family medical history. The insurance company wants to make sure you're not likely to die anytime soon and that you're not trying to buy more coverage than makes financial sense.

If you have health issues, you might pay higher premiums or even get declined. That's why it's better to buy coverage while you're young and healthy, even if you don't think you need much yet.

What I Can Help You With

Figure out how much you actually need: Based on your family situation, income, debts, and goals.

Term vs. permanent: Which type makes sense for your situation and budget.

Company comparisons: Different insurance companies price risk differently. I can shop around to find you the best rates.

Application guidance: Help you navigate the underwriting process and position your application for the best possible outcome.

Policy reviews: If you already have coverage, let's make sure it still makes sense for your current situation.