Life insurance only matters to the people who depend on you, which makes it easy to put off. This guide covers term versus permanent coverage, how much you actually need, and where to buy it.
01
Term vs. permanent life insurance: How the two main types work, what each one costs you, and where each one fits.
02
How much coverage you need: A simple formula to estimate the number, based on your debt, income, mortgage, and your kids' education.
03
Why you may need it: Life insurance protects the people who depend on your income. See what that income is really worth.
04
What to check before you buy: The insurer's financial strength rating, and how the person selling you the policy gets paid.
Term Life Insurance
Coverage for a set number of years, such as 10, 20, or 30, usually at a lower cost than permanent coverage.
Whole and Universal Life
How permanent coverage works, what cash value is, and the tradeoffs of higher cost and more moving parts.
How Much Coverage to Buy
A starting formula called DIME that adds up Debt, Income, Mortgage, and Education.
Real Monthly Costs
See what a $500,000, 20-year term policy can cost at ages 30, 40, 50, and 60.
Buying Smart
Two questions to ask before you buy: how strong is the insurer, and how is the seller paid?
Why Starting Early Helps
Premiums are set by your age and health when you buy, so the same coverage usually costs less the earlier you start.
