What is life insurance?

Life insurance is a policy that provides financial protection if you pass away. The amount of insurance (also known as a death benefit) is paid as a tax-free lump sum to the person(s) you choose (known as a beneficiary).

How much insurance do I need?

Life insurance is intended to provide financial means to those that are dependent on your income. A person should have enough insurance to cover costs such as mortgage, lost income, and savings for college/trade school tuition.

How does life insurance work?

Life insurance, thankfully, is very straight forward. When the insured person dies, a claim is made and payment goes to the beneficiaries. As long as you pay your premiums, your policy is in force.

When does life insurance not pay?

Over 99% of life insurance claims are paid out. The only times they do not pay is if the insured person omits or intentionally withholds information on an application, or in the event of suicide in the first two years the policy is in force.

What is a good amount?

A quick rule of thumb to estimate your life insurance needs is 10x your annual earnings. A life insurance calculator can factor your income and planned retirement age, remaining mortgage, lines of credit and other debts, as well as education planning for your kids.

Do you lose your insurance when you leave your job?

If you have a group life insurance policy that is offered or paid for by your employer, this likely will not stay with you when you leave your job. This is because the policy is owned by your employer. Typically, group coverage is a small portion of how much you need. An individually owned policy will supplement your work coverage, and will stay with you if you leave your job.

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