Question 1

How much life insurance do I need?

Accepted Answer

A general guideline is 10 to 12 times your annual income, but the right amount depends on your specific situation. Consider your family's living expenses, outstanding debts including your mortgage, future education costs for children, and final expenses. Subtract existing assets like savings, investments, and employer-provided group life insurance. The difference is the amount of individual life insurance you should carry.

Question 2

What is the difference between term life and whole life insurance?

Accepted Answer

Term life insurance provides coverage for a specific period (10, 15, 20, or 30 years) and is the most affordable option. Whole life insurance provides permanent coverage for your entire lifetime and includes a cash value component that grows over time. Term life is best for protecting your family during your peak earning years; whole life serves estate planning and lifelong protection goals.

Question 3

When is the best time to buy life insurance?

Accepted Answer

The best time to buy life insurance is as early as possible — ideally in your 20s or 30s when you are young and healthy. Premiums are based on your age and health at the time of application, so locking in a rate early saves significant money over the life of the policy. Key life events that trigger a review include getting married, buying a home, having children, or starting a business.

Question 4

Is my employer's group life insurance enough?

Accepted Answer

In most cases, employer group life insurance alone is not sufficient. Typical group policies provide one to two times your annual salary, which falls far short of the 10 to 12 times income recommended by financial professionals. Group coverage is also tied to your employment — if you leave your job, you lose coverage. We recommend individual life insurance from Penn Mutual, Lafayette Life, or National Life Group as your primary coverage.