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Life is busy, and life insurance can seem like one more thing to figure out later. But protecting the people who depend on you doesn’t have to be overwhelming. This guide breaks it down.

What is Life Insurance, and How to Know if You Need It

Life insurance is a way to financially assist your loved ones when you pass away. It’s a contract that says as long as your policy is still active when you pass away, a financial payout called a death benefit will be
made to your loved ones. Life insurance isn’t just for people of a certain age, it’s for anyone who wants to make sure the people they care about are protected if the unexpected were to happen.

When asking yourself if you need life insurance, some questions to consider are:

• Would someone struggle to pay bills or debt without your income?
• Do you have a mortgage, student loans or shared financial responsibilities?
• Do you want to help cover future expenses like education or caregiving?

If you answered “Yes” to any of these questions, life insurance could be a simple way to help the people who count on you most.

What Life Insurance Can Help Cover

Life insurance can support your loved ones in several meaningful ways. It can help pay off shared debts like a mortgage, replace lost income to maintain your family’s lifestyle or cover final life expenses – which often go beyond just the funeral to include things like cremation or estate costs. It may also give your family time to grieve without the immediate pressure of returning to work. In some cases, it can even help fund future goals, such as a child’s education or starting a small business.

Why You Shouldn’t Wait to Get Life Insurance

Age can play a big role in the cost of life insurance. In general, the younger and healthier you are, the more affordable your premiums will likely be and the more coverage you may qualify for. But beyond cost, life can change quickly. A diagnosis, an accident or a lifestyle change can happen without warning. That’s why it’s better to get life insurance early rather than too late. Buying a policy now can help ensure you’re covered before your health changes or your eligibility becomes limited.

Types of Life Insurance Policies

Once you’ve decided to get life insurance, the next step is understanding the different types of coverage available and which one might fit your needs best.

Term life is temporary coverage. It lasts for a set number of years, often 10, 20 or 30 years, and is typically more affordable than permanent policies. It’s a great fit for covering needs that may decrease over time, like a mortgage, car loan or other debts. Term life policies often include a conversion option which means you may be able to switch to a permanent policy later without having to go through another health exam or medical approval process.

Permanent life insurance policies, like whole or universal life, are designed to last your entire life, usually up to age 110. They’re often used for long-term financial goals, like leaving a legacy for grandchildren, supporting a cause you care about or covering future financial needs.

How to Get Started

Getting started with life insurance doesn’t have to be difficult. Your independent agent can help you figure out what type of policy fits your needs, your goals and your budget. When discussing your needs, it’s a good idea to let your independent agent know if you are going through a major life event, like getting married, having children, starting a business or getting divorced. Even changes like switching careers, retiring or buying a home can affect your coverage needs.

Life changes, and your life insurance should change with it. Whether you’re just starting to build your future or looking to protect the one you’ve already created, life insurance can help support the people who matter most. Talk to your independent agent to explore your options and take the first step.

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Disclaimer: This article is not expert advice. The analysis of coverage is in general terms and is superseded in all respects by the Insuring Agreements, Endorsements, Exclusions, Terms and Conditions of the Policy. Some of the coverage mentioned in this material may not be applicable in all states or may have to be modified to conform to applicable state law. Some coverages may have been eliminated or modified since the publishing of this material. Discounts may not be available in all states. Limitations and conditions may apply. Premiums will be based on benefits chosen. Please check with your local Independent Auto-Owners Insurance Agent for details.

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