Life insurance

Do I need insurance? Expand/Collapse

Everyone can benefit from some kind of safety net. If you have a family or dependents, life insurance becomes an important tool for future protection. If you are single, insurance can help you dictate what happens to your assets and estate. Also, any time your personal circumstances change, it’s a good idea to re-assess your insurance protection to decide if you need more or different coverage.

What is insurance and how does it work? Expand/Collapse

Life insurance is protection that benefits your loved ones and dependents, such as your spouse or children after you pass away by providing a tax-free cash payment. There are two main types of life insurance options - permanent life insurance and term life insurance.  The difference between the two types of life insurance mainly come down to the length of the coverage.

Types of insurance Expand/Collapse

Permanent life insurance provides lifelong financial protection and term life insurance provides protection over a specific term, such as 10, 15 or 20 years and can be renewed after those terms are up.  

Under the umbrella of permanent life insurance, there are two types of protection available that are characterized by the way the payouts are structured:

  1. Whole life insurance – characterized by steady premium payments and a savings feature.
  2. Universal life insurance – offers flexibility in payments and is also known as “adjustable life insurance”. With this option, you can increase or decrease your death benefit and can pay your premiums at any time and in any amount, after your initial payment is complete.

Unlike permanent life insurance, term life insurance provides coverage only for a pre-determined and specific term.  Term life insurance is beneficial for those who are looking to pay less for their insurance coverage and who want the ability to budget and plan for coverage within a specific time period.

Features Expand/Collapse

Here is a summary of the features of each type of life insurance option.

Term life insurance Whole life insurance Universal life insurance
Death benefit
Flexible payments
Cash value guaranteed
Tax advantages
Low monthly cost


What does life insurance cover? Expand/Collapse

Even though most people recognize that there are immediate costs after a loved one passes away, such as funeral arrangements and estate considerations, there are actually long ranging financial costs that life insurance can also help take care of. 

Shor term costs
  • Funeral arrangements
  • Out-of-pocket medical expenses
  • Estate settlement
  • Unpaid debt
Ongoing needs
  • Mortgage or rent payments
  • Lifestyle expenses
Long term costs
  • Retirement and long term spousal care
  • Education costs for dependents