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A quick guide to Life Insurance and Choosing the Right Policy

Buying life insurance now provides a financial safety net for your dependents later on if you’re not around to take care of them. After you’re gone, your family can use the proceeds to cover funeral costs, mortgage payments, college tuition and other expenses. Any amount can make a difference, and it can cost less than you think.

Who needs life insurance?

Life insurance is usually recommended for anyone who has loved ones who depend on them financially. This includes working or stay-at-home parents, homeowners who have a mortgage, business owners and others.

How much insurance do I need?

Any amount of coverage can make a difference for your family. As a starting point, you may want to consider budgeting 1% of your annual income before taxes. Of course, everyone’s needs are different, and a licensed TruStage agent can help you decide what makes sense for your family.

What is the difference between whole, term life insurance and AD&D?

Term insurance covers you for a set amount of time and is sufficient for most people. Among the various types of life insurance available, term life insurance quotes are the most affordable. Whole life insurance pays out no matter when you die, and builds cash value that you can access. More on the difference:

Term life insurance

  • can provide affordable, high-coverage protection for a specific period of time (or term).
  • pays a benefit if you die during the term.
  • could have benefits and premiums that change over time, depending on the specific policy.

Whole life insurance

  • offers coverage you can never outlive.
  • has rates that remain the same throughout your lifetime.
  • can provide a future source of money prior to your death, building cash value over time.
  • allows for loans (which incur interest) against the value, with unpaid amounts decreasing the death benefit.

Accidental Death & Dismemberment

  • pays a cash benefit in the event of an accident that causes death or a serious covered injury.
  • can be a good supplement to life insurance, enhancing your overall protection and adding coverage for specific serious injuries from accidents.

Life insurance should be simple and affordable.

In general, you should find your ideal life insurance policy amount by calculating your long-term financial obligations and then subtracting your assets. The remainder is the gap that life insurance will have to fill.

Trustage helps credit union members compare whole and term insurance, and explore affordable options so you can make good decisions for your family. It’s easy to get instant quotes—start with a monthly payment that fits your budget and see options in minutes online. Or call 1-800-814-2914 to talk to a licensed agent for friendly, no-pressure advice. Make sure to tell them you’re a member of the credit union!

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