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Life insurance, what is it and why should I have it?

By June 28, 2022August 11th, 2022Personal Insurance


Life insurance is one of the best ways to provide for your family in the event that you leave this world.  It can also be a way to build some wealth depending on your policy.  People will say “I have life insurance at work” or “We cannot afford to purchase life insurance”.  What if you leave work voluntarily or involuntarily? 


Can you afford not to purchase life insurance? 

The option to continue it could be expensive and there are policies available that can be affordable to meet your needs. Most of the time employers offer life insurance that is non portable which simply means that once you leave the employer you cannot take the life coverage with you.

In this hustle and bustle world we live in, where two incomes are the norm, can your family survive financially without both incomes?  Would loved ones be able to continue the same lifestyle or would they lose the house or car?


The Covid-19 Pandemic brought a lot of reality to the world and accidents do happen.  Are you prepared for the unknown?  Is your family protected? Here are some common questions and answers to help get you started on planning for a life insurance policy.

Do I have to have it?

  • Sometimes YES and sometimes NO!
  • Although life insurance is not normally required, like your car insurance.  There are some instances where it is.
  • If you are a business owner and have a partner, YES.
  • If you are court ordered because of children or a divorce or both, YES
  • No, life insurance is not required. However, those with dependents are advised more towards acquiring life insurance to insure anyone (spouse, children, etc.) will be taken care of if you unexpectedly die. 

I don’t have dependents. Should I get it?

  • In some circumstances it may be worth it, but you should calculate and make sure you are getting your money’s worth. What are your needs and would it benefit my situation or future situation?  Are you planning to have kids or get married one day? The younger you are the cheaper the insurance. This is one of those times it pays to be young.

When should I look into getting life insurance? Do my kids need it?

  • Life insurance is used to supplement and/or replace income.  Most adults will begin purchasing Life insurance when there is a major life change such as marriage, purchasing a new home, having children or estate planning.
  • The question isn’t really if your kids need it, it is do i need it for my kids?  Do you have the means in savings to pay for the accidental death of a child?  Would you have to pay for a child’s burial with a credit card or loan?  How would you like paying that bill each month as a cold reminder?

What should I be looking for with my agent when I am picking life insurance?

Look at the designations your agent has behind their name to make sure you are talking with an actual professional, LUTC, CFP….

  • Cost of premiums / affordability – How much can I get for what I can afford?
  • Policy adjustment – Is the policy flexible?
  • Length of term – What am I using this for? 
    • Term- 10 year, 20 year, 40 year, or permanent.
  • Application Requirements – Am I healthy enough for the coverage wanted/needed?
  • Turnaround time for the policy– How long does it take to get coverage?
    • Instant issue versus exams and blood work

What kinds of plans are available?

  • Whole Life
  • Term
  • Return of Premium (ROP)
  • Universal Life
  • Variable Universal Life
  • Buy Sell
  • Key Man / Key Person
  • Mortgage Protection

How will I know which life insurance I need?

  • Speak to one of our experienced consultants today at 919-779-5115. They can go through any questions or concerns you may have to find the best policy and best price with one of our many carriers. Also check out our website for more information