Life Insurance - Who Needs It?

If your employer provides group life insurance as one of your benefits, you may think you don't need an individual policy. But what happens to that benefit if you leave your job? Employer-provided life insurance coverage generally ends once you're no longer employed by the company. And even if you remain with your employer throughout your career, will the amount of coverage - typically, a multiple of your salary - be enough? Purchasing a life insurance policy* on your own can ensure that your coverage will continue no matter where life takes you.

The Younger You Are

When you’re just starting out, limited funds can make it difficult to add another item to your budget. But keep in mind that the younger you are when you purchase a policy, the lower your premiums will likely be. You can choose the amount of coverage you want based on your needs.

A Safety Net

Life insurance proceeds can be used to provide for your loved ones in the event of your death. Knowing they’ll have enough money to cover living expenses, college costs and pay off any debts can help relieve financial concerns.

Options

Term life insurance provides coverage for a specified amount of time and pays a death benefit to your beneficiary if you die during the policy’s term. A whole life policy provides lifelong coverage and builds cash value. Universal life policies offer the opportunity to build cash values in addition to the death benefit provided. Your financial professional can explain the benefits of each type and help you choose the one that meets your needs.

*Applications for life insurance are subject to underwriting. No insurance coverage exists unless a policy is issued and the required premium to put it in force is paid. Accessing cash values may result in surrender fees and charges and may require additional premium payments to maintain coverage and will reduce the death benefit and policy values. Guarantees are based on the claims-paying ability of the issuer. Riders may incur an additional premium. Rider benefits may not be available in all states. Riders that pay benefits for events other than death will likely reduce the policy’s death benefit and cash value.