View Past Articles
How to Buy Car Insurance How to Buy Homeowners Insurance
New: Life Insurance Basics

To most people, the thought of buying life insurance is daunting. Understanding the different types of policies leaves many people dazed and confused. We've put together this quick overview to help make sense of the confusion. The first and most important step in getting the right insurance policy for you and your family is to find a trusted insurance agent that can help you determine if you need life insurance and then if needed, what type of policy is right for you and your family.

Lets start with the basics:

What is life insurance?
Life insurance is designed to protect your family and other people who may depend on you for financial support. If you die and lose your income, the people that are dependent on your financial support will lose that income, so life insurance can help cover some or all of that loss depending on the policy you choose. There are instances where life insurance can be beneficial even if you have no dependents, such as your desire to cover your own funeral expenses. Additionally, some types of polices include an investment component to help build cash value over time.

What Type of Policy Should I Buy?
The best way to answer this question is to work with your agent and discuss the different options available and what type of policy best meets your needs. Below is a quick summary of the different types of life insurance. Ask your agent to provide more details.

Term insurance - The simplest form of insurance. You purchase coverage for a specific price for a specified period. If you die during that time, your beneficiary receives the value of the policy. There is no investment component.

Whole Life - In this more traditional life insurance policy, the premiums stay the same over the life of the policy, which stays in effect until your death, even after you've paid all the premiums. A cash reserve is built up, and invested by the insurance company. Whole life offers both a death benefit and cash value, but is typically more expensive than Term Insurance.

Variable Life - Variable life polices build up a cash reserve that you can invest in any of the choices offered by the insurance company. The value of your cash reserve depends on how well those investments are doing.

Universal Life - You can vary the amount of your premium with Universal life insurance policies by using part of your accumulated earnings to cover part of the premium cost. You can also vary the amount of the death benefit.

How Much Will It Cost?
The least expensive life insurance is likely to be from your employer's group life insurance plan. These policies are typically term policies, which means you're covered as long as you work for that employer. Some policies can be converted upon termination.

The cost of other types of life insurance varies greatly, depending on factors such as how much you buy, the type of policy you choose and the underwriter's practices. The underlying costs are based on actuarial tables that project your life expectancy. High risk individuals, such as those who smoke, are overweight, or have a dangerous occupation or hobby (for example, flying), pay more.

Life Insurance is an important investment in your family's financial security. Our agents specialize in working with clients to make sure they have the right amount of coverage. If you have additional questions, please give us a call at 518-966-4466 (or toll-free 800-287-3689) or check out our Frequently Asked Questions (FAQ) page.