Smaller policies designed to cover burial costs and end-of-life expenses. Learn about coverage options, costs, and how to choose the right policy.
Life Insurance
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Life Insurance Guide
Life insurance provides financial protection for your loved ones after you’re gone. It can help cover final expenses, replace lost income, and secure your family’s future.
Not sure what coverage you need? Take our free 2-minute quiz to get personalized insurance recommendations based on your situation.
Types of Life Insurance
Term Life Insurance
Coverage for a specific period (10, 20, or 30 years) with affordable premiums.
Whole Life Insurance
Permanent coverage with a cash value component that grows over time.
Universal Life Insurance
Flexible permanent coverage with adjustable premiums and death benefits.
Final Expense Insurance
Smaller policies designed to cover burial and end-of-life costs.
Frequently Asked Questions
How much life insurance do I need?
A common guideline is 10-12 times your annual income, but your actual needs depend on your debts, dependents, income replacement needs, and future expenses (like college). Consider what your family would need to maintain their lifestyle, pay off debts, and fund future goals.
What's the difference between term and permanent life insurance?
Term life insurance covers you for a specific period (10, 20, or 30 years) with lower premiums and no cash value. Permanent life insurance (whole, universal) lasts your entire life, builds cash value, and costs significantly more. Most people need term life; permanent policies suit specific estate planning needs.
At what age should I buy life insurance?
The best time to buy life insurance is when you have dependents or significant debts that others would inherit. Buying when you’re young and healthy locks in lower rates. If you’re single with no dependents and no co-signed debts, you may not need coverage yet.
Does life insurance pay out for any cause of death?
Most life insurance policies cover death from any cause, including illness, accidents, and natural causes. However, policies typically have a 2-year contestability period and may exclude suicide during the first 1-2 years. Some policies exclude certain high-risk activities.
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Calculate Your Life Insurance Needs
Not sure how much coverage you need? Use our calculator based on the DIME method (Debt, Income, Mortgage, Education) to get a personalized estimate.
Life Insurance Needs Calculator
Your Estimated Life Insurance Need
Recommended Coverage Amount
$0
Breakdown
| Income Replacement | $0 |
| Mortgage Payoff | $0 |
| Other Debts | $0 |
| Education Fund | $0 |
| Final Expenses | $0 |
| Subtotal (Needs) | $0 |
| Less: Existing Coverage | -$0 |
| Less: Liquid Assets | -$0 |
| Recommended Coverage | $0 |
Note: This is an estimate based on the DIME method. Your actual needs may vary.
Consider consulting with a licensed insurance professional for personalized advice.
Related Articles
- Term vs. Whole Life Insurance - Compare your options
- Life Insurance Mistakes to Avoid - Common coverage pitfalls
- Life Insurance Costs by Age - What to expect at each stage
Related Checklists
- Having a Baby Checklist - Life insurance for new parents
- Getting Married Checklist - Coverage changes when you marry
- Retiring Checklist - Review life insurance needs in retirement
Related Insurance Types
- Disability Insurance - Protects your income while you’re alive
- Health Insurance - Covers medical expenses for you and your family
- Long-Term Care Insurance - Covers care costs in later years
Next Steps
Once you know how much coverage you need:
- Compare term vs. permanent - Term life is usually best for income replacement; whole life suits specific estate planning needs
- Get quotes - Your age, health, and coverage amount determine your premium
- Consider riders - Options like disability waiver, accelerated death benefit, or term conversion
- Review annually - Life changes (new baby, paid-off mortgage) may change your needs
Official Resources
- NAIC Life Insurance Guide (opens in new tab) - Consumer education from state regulators
- III Life Insurance Basics (opens in new tab) - Insurance Information Institute overview
- Find Your State Insurance Department (opens in new tab) - Verify insurers, file complaints
Data Sources
Life insurance data in this guide come from ACLI (opens in new tab) , LIMRA (opens in new tab) , NAIC (opens in new tab) , and insurer rate filings. Learn more about our data collection methods on our Methodology page.
Life by State
Life requirements and costs vary significantly by state. Select your state for specific regulations, average premiums, and local resources.
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Life insurance without medical examination requirements. Learn about coverage options, costs, and how to choose the right policy.
Affordable coverage for a specific period (10, 20, or 30 years). Learn about coverage options, costs, and how to choose the right policy.
Flexible permanent coverage with adjustable premiums and death benefits. Learn about coverage options, costs, and how to choose the right policy.
Permanent coverage with guaranteed death benefit and cash value growth. Learn about coverage options, costs, and how to choose the right policy.