Life insurance is a financial safety net for your loved ones. It provides a tax-free payment (called a death benefit) to your beneficiaries when you pass away, helping them maintain their lifestyle, pay bills, and achieve their goals even without your income.
If you're a primary earner, life insurance ensures your family can continue paying mortgages, bills, and daily expenses without your income.
Life insurance can help cover outstanding debts like mortgages, car loans, credit cards, and student loans, preventing financial burden on your family.
Ensure your children can attend college and pursue their dreams even if you're not there to support them financially.
Funeral and burial costs average $7,000-$12,000. Life insurance ensures your family won't face these expenses during an already difficult time.
There are different types of life insurance, each designed for different needs and budgets. Here's a simple explanation:
Term life insurance provides coverage for a specific period (like 10, 20, or 30 years). It's the most affordable and straightforward type of life insurance.
You choose a coverage amount and term length. If you pass away during the term, your beneficiaries receive the death benefit. If the term expires, coverage ends (though you can usually renew).
Whole life insurance provides coverage for your entire life and builds cash value over time that you can borrow against or withdraw.
Part of your premium goes toward coverage, and part goes into a cash value account that grows tax-deferred. Premiums stay level for life, and you're covered as long as you pay premiums.
Universal life insurance offers flexible premiums and death benefits, along with a cash value component. It's more complex but highly customizable.
You can adjust premium payments and death benefits within limits. Cash value grows based on market interest rates or investment performance (depending on the type).
Keep your family in their home
Credit cards, loans, and other bills
College tuition and school expenses
Food, utilities, and necessities
Final expenses and memorial costs
Daycare and caregiver support
Years of lost salary for family
Leave assets for future generations
A common rule of thumb is 10-12 times your annual income. Consider your mortgage, debts, future expenses (like college), and how many years of income replacement your family would need.
Do you have young children? A non-working spouse? Aging parents? More dependents typically mean you need more coverage to protect everyone.
Subtract any savings, investments, or existing life insurance from your coverage need. You only need enough to fill the gap.
For term insurance, choose a term that covers your family until major obligations are met (kids graduate, mortgage paid off, retirement reached). Common terms are 20 or 30 years.
Our team at ProjectCW Health will help you calculate your exact needs, compare options, and find affordable coverage that gives you and your family complete peace of mind.
Life insurance is one of the most important gifts you can give your loved ones. Let us help you find the right coverage at the right price.