Why get life insurance? First and foremost, to protect your family and those who depend on you for financial support. All life insurance will provide a payout to your beneficiaries if you pass away, but different kinds of policies can provide other benefits as well. The best way to start learning about your options is by seeing how easy it can be to get that protection.
Just take a few seconds to fill in the blanks, and you’ll see how affordable a policy can be:
Life insurance basics
Our calculator gives you the monthly cost for a 20-year term life insurance policy. The policy you end up buying could cost more or less depending on the death benefit (or coverage amount) and type of policy chosen. A policy with a shorter 10-year term will cost less than a 20-year term; permanent life insurance coverage (such as whole or universal life) will cost more. Also, factors such as age, health status, gender, and lifestyle affect your life expectancy along with the cost of a policy – that’s why most life insurance companies require a medical exam before you can get coverage.
Term life insurance
This coverage lasts for a limited time, typically 10, 15, 20, or 30 years. It’s very easy to get a quote and buy term coverage, and it’s also typically more affordable than permanent whole or universal life insurance. However, when your term ends, you’re no longer protected – you either have to apply for a new policy at a higher cost (because you’re older) or go without. However, many term policies (such as those from Guardian) may let you transition to a permanent policy in the future. You may also be able to get a policy through your employer at a lower group rate.
Whole life insurance
This is permanent life insurance coverage that can provide guaranteed protection for the rest of your life while earning additional cash value that can be used for things like policy loans8. Whole life policies don’t expire as long as your regular premiums are paid. Policies from a mutual life insurance company (such as Guardian) may also provide dividends, helping you fund life’s other financial opportunities.1,2,3
Universal life insurance
Like whole life insurance, this type of policy provides permanent protection and can earn additional cash value. However, universal life insurance can give the added flexibility of adjusting your monthly payments within a specific range to help you better deal with changing work circumstances.4
Why you need to consider life insurance
Life insurance is an important part of your financial wellness, regardless of your family status. Here are types of coverage to consider for what’s important to you:
Single adult starting out
If you pass away and don’t have life insurance, final expenses and other costs could be a burden on those around you. For example, the average cost of a funeral is $7,000 – $10,000.5 And if anyone, like a parent, has co-signed for loans or other types of debt you have — including some student loans — that person could be responsible for the debt, or related taxes.6
Type of life insurance to consider
Term life is typically an inexpensive approach. And generally, the cost when you’re young is lower than it will be later. With a convertibility option, you can lock in coverage now and then convert to permanent coverage later when you have a higher income.