Three Steps to Help Get You Started
Step 1: What kind of coverage do I need?
Your advisor or agent can help you determine what’s right for you. Basically, there are two types of insurance, “term” and “permanent”:
Think term life insurance if you only want temporary financial protection. For example, until the mortgage is paid or the kids are out of college.
Think permanent life insurance if I want to leave behind a legacy. For example, if you want to leave supplemental retirement income for a spouse, or tax-free money to your children or a charity.
Find out more about the difference between term and permanent life insurance.
Step 2: How much coverage do I need?
Basically, you’ll want a death benefit that covers the following:
+ Final expenses (e.g., medical and funeral costs)
+ Mortgage payoff
+ College expenses for your kids
+ Income replacement (available up to 30 times your annual income)
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| = Total life insurance coverage |
Use our
life insurance calculator to help determine exactly how much protection your family needs.
Step 3: Are my needs more complex?
Your life insurance needs may be more complicated, of course. Perhaps you want to use life insurance to transfer wealth or to transition a family business. Talk to your advisor or agent about the best solution for you.
Learn more about using life insurance as a wealth-transfer tool.
