Life Insurance 101

The purpose of life insurance

Life is full of the unexpected – that's why people rely on life insurance to help them through tough times. A life insurance certificate is there to replace income should the death of a breadwinner occur, but it can also:

  • Cover funeral costs
  • Pay bills
  • Finance future needs like savings for college, paying off a mortgage or protecting retirement income

It's for you, too

Life insurance is good for just about anyone, including:

  • Spouses
  • Married and single parents
  • Stay-at-home parents
  • Retirees
  • Small business owners
  • Single people who are supporting family members
  • Even children

If you're unsure whether you need life insurance, ask yourself this question: “If I died tomorrow, how would my family fare financially?”

Choose the right option

There are several types of life insurance, but most fall under the following two categories:

Permanent Insurance – a permanent life insurance certificate costs more than term insurance, but provides lifelong coverage. And the certificate will never expire as long as the necessary premiums are paid.

Permanent insurance certificates can build cash value that may be borrowed for such purposes as buying a car, making a down payment on a home, or paying for college.

Permanent insurance includes the following products:

Term Insurance – a term life insurance certificate is more affordable than permanent certificates, and only provides coverage for a “term” of time (typically 10, 15, 20, or 30 years). Term insurance does not build cash value, but is a good choice for growing families who are looking to cover needs that will disappear in time.

Decide how much is enough

When figuring out how much life insurance you and your family will need, ask yourself the following questions:

  • How much money will my family need after my death to meet immediate expenses, like funeral expenses and debts?
  • How much money will my family need to maintain their standard of living?
  • What are my financial goals? What would I like to accomplish?

Adjust with life's changes

Over time, you may find that your current life insurance certificate is no longer sufficient. Your insurance needs change when you experience a life change, such as:

  • Marriage
  • Having a baby
  • Death in the family
  • New home
  • New business

Figure out what's best

Knowing what kind of life insurance you need can be confusing – let WoodmenLife help. Your local Representative can help you find the type of life insurance that's right for you and your family.

WEB79 - 2/1/2017

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