Do You Need Life Insurance?

March 15, 2013

Yes! Everyone does!

Most of us already know the importance of life insurance. We hear about it all the time, and odds are your insurance agent has asked you about it on more than one occasion. Regardless of your age, health, marital status, whether or not you have children, you should still purchase life insurance for very important reasons.


Life insurance is essentially an agreement between yourself and an insurance company where you pay premiums towards a certain amount of insurance, and the insurance company pays the proceeds to your designated beneficiary when you die.

If you have significant assets, or if you think that no one in your family will be financially impacted by your death, you may feel that you don’t need life insurance. However, this is very rare and most people should have life insurance. Even if you’re married and very financially secure, you should still consider getting life insurance just to provide that extra coverage for your spouse in the event of death. It’s better to be safe than sorry, and budgeting a small portion of your income will provide peace of mind and security for you and your loved ones.

The two most common types of life insurance are term and whole life. The biggest difference between these is that a term policy is life coverage only, meaning that when the insured passes, the insurer pays the face amount of the policy to whomever was named beneficiary. You can buy term insurance for one year to thirty years.

Whole life insurance, however, basically combines a term life insurance policy with investing. The investment could be made into bonds, money market instruments, or even stocks. A whole life policy will continue to build cash value that can even be borrowed against. There are three main types of whole life insurance: traditional whole life, universal, and variable whole life insurance.

As far as the amount of the premium payments, you can lock in the monthly payment for the life of the policy on both kinds of life insurance. Just remember to think about how much you really need, and you can do this by considering things like how much you owe on a mortgage and other debts, how much it will cost for your spouse and/or children and/or beneficiary to live comfortably after you’re gone, and after you’ve come up with numbers for these financial obligations, you’ll have an idea of how much life insurance you need. Our agency can provide you with a detailed worksheet that will help determine the amount of life insurance coverage that you need.

It’s best to get life insurance before the age of 50, because premiums substantially increase after this. If you don’t have life insurance you should discuss it with your insurance agent. It is important of make certain that your family and loved ones are protected.

Call Dave Terpening Insurance Agency, Inc. at 1-800-585-1776 to discuss life insurance and select a policy that is affordable and provides you with adequate coverage.

Post author Loren Pleet