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Life Insurance

Life Insurance Basics

Understanding life insurance types, how coverage works, and when it might make sense for your household.

Updated January 15, 2026

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What Is Life Insurance?

Life insurance is a financial safety net for the people who depend on you. If something happens to you, a life insurance policy provides money (called a "death benefit") to your beneficiaries—usually family members.

Think of it as replacing your income and helping cover expenses like:

  • Mortgage payments
  • Day-to-day living costs
  • Children's education
  • Outstanding debts

Types of Life Insurance

Term Life Insurance

Term life is straightforward: you pay premiums for a set period (10, 20, or 30 years), and if you pass away during that time, your beneficiaries receive the death benefit.

Best for: Young families, people with mortgages, or anyone who needs coverage for a specific time period.

Permanent Life Insurance

Permanent policies cover you for your entire life and include a savings component called "cash value" that grows over time.

Best for: Estate planning, leaving a legacy, or those who want lifelong coverage.

How Much Coverage Might You Need?

A common starting point is 10-12 times your annual income, but your actual needs depend on:

  • Your family's monthly expenses
  • Outstanding debts (mortgage, car loans, student loans)
  • Future costs like college tuition
  • Existing savings and investments

Our Life Coverage Estimator can help you think through these factors.

When to Consider Life Insurance

Life insurance often makes sense when:

  • You're getting married
  • You're starting a family
  • You're buying a home
  • You're the primary income earner
  • Someone cosigned a loan with you

Next Steps

Understanding your options is the first step. When you're ready, having a conversation with a licensed agent can help you find coverage that fits your situation—with no pressure and no obligation.

Estimate Your Coverage Needs

Use our free calculator to get a starting point for how much life insurance might make sense for your household.