Office of Enrollment Management

Life Insurance

Life Insurance

A life insurance policy provides a sum of money to the policy beneficiary upon the insured’s death. Life Insurance is purchased to provide for people who are financially dependent upon you. There are two types of life insurance, term and whole life (permanent).

Term versus Permanent Life Insurance. Term covers temporary expenses, 10 to 30 years of coverage, usually cheaper per month, designed for families with temporary needs.  Permanent is lifelong need, usually whole life, usually about the cost of a cable bill, designed for lifelong needs or cover final expenses.

Source: AAA Life Insurance Company

How much life insurance should I carry?

Most experts agree that you carry 10-12 times your income. Every person's situation is different.  Look at your financial goals, amount of debt, and reasons for obtaining life insurance to best determine your needs.  Remember this insurance covers expenses for your beneficiaries in the event of your death. What do you want to provide for your family in the event of your death? Often this means covering a mortgage, cost of childcare, and providing an income to your beneficiaries. 

Calculate term life insurance.

Calculate whole life insurance with the policy genius calculator.