What is Life Insurance?

Perhaps a basic question, but an excellent place to start – once you begin with an understanding of what life insurance is and its applications, you can start to make choices about which type of policy best meets the needs of you and your family.

In simplest terms, life insurance provides coverage in the event of your death – ensuring that your family continues to have financial protection even when you are gone. The simplest perspective of life insurance is to look at the stage of your life and your financial means. Different types of insurance suit different life stages, needs, and financial abilities. The availability of various types of life insurance policies makes it easier to find one that is most applicable to your situation.

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Kiplinger’s Personal Finance offers a tutorial on their website called “Life Insurance Made Simple.” This is an excellent overview of how your need for life insurance is influenced by your life stage: “starting with no need when you’re young, progressing to greater and greater need as you take on more and more responsibility, and finally beginning to diminish as you grow older.” The following provides a synopsis of the stages of life and need for life insurance:

Single

At this stage, because you do not have dependents, there will be no one who misses your income when you pass away. While insurance may not be a necessity to protect your family finances, it should be considered. At a younger age, the rates will be more affordable.

Married

A small amount of life insurance is recommended at this stage - even though there are not yet children present, in the event of your death, the death payment of a policy would pay for mortgage/rent payments, credit card debts and funeral costs.

Married with Children

Life insurance is critical once children are present because your family would be greatly impacted by the loss of your income.

Retirement

At this point, your children no longer rely on your income and you are likely living off of your retirement funds. While not as much life insurance is necessary for this stage as compared to earlier in your life, it is still a consideration to cover funeral expenses and debts, as well as to supplement your surviving spouse's retirement money.

Visit the Types of Life Insurance page for a listing of all available types and links to more information about each. Additionally, you can visit the other topics in Life Insurance Basics, including rate information, uses of life insurance, and discussions about the policy and company ratings.

If you're ready for a life insurance quote, request a free life insurance quote now. You'll see how affordable life insurance can be.

Life-Insurance-Info.us is not a life insurance broker or carrier, and cannot issue life insurance policies. This site provides free information on insurance providers and coverage options. We are not associated with the companies profiled on Life-Insurance-Info.us and we make no representation, express or implied, that you will receive a quote from a specific company profiled herein. Products and policies may not be available in all states, and product and policy information is subject to change without notice. Please contact the insurance company directly to answer your policy inquiries.