Key Takeaways
- Life insurance provides money to the people you choose when you pass away.
- Term insurance covers a set period; permanent insurance is designed to last a lifetime.
- Coverage needs often change after major life events — reviews matter.
01What it does
Life insurance pays a benefit to your chosen beneficiaries when you pass away. Death benefits are generally received federal-income-tax-free by beneficiaries, although exceptions may apply — a qualified tax professional can address individual circumstances.
Families commonly use life insurance to replace income, pay off a mortgage, cover final expenses, or leave something meaningful for children and grandchildren.
02The two main types
Term life insurance covers you for a set number of years — often 10, 20, or 30 — and is usually the most affordable option. Permanent life insurance, such as whole life, is designed to last your entire life and may build cash value over time.
Each serves different goals, and many families use a combination over their lifetime.
03Why reviews matter
Marriages, new grandchildren, a paid-off mortgage, retirement — life changes, and coverage that fit ten years ago may not fit today. A periodic review simply confirms your coverage still matches your family's needs. Nothing more, nothing less.
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SCHEDULE A LEGACY REVIEWThis article is educational only and is not legal, tax, investment, or financial advice. Estate-planning documents and legal advice should be provided by a qualified attorney.