Life insurance covers your final expenses. You need it so those who depend on you—your beneficiaries—are taken care of after you pass. The insurance company will pay the policy amount in a lump sum to those you name as beneficiaries. In addition to your final expenses, life insurance can help with things like paying off debts, funding children’s education and even supplementing day-to-day expenses. And, because the payout will likely be tax free and the cash value for whole life policies grows tax-deferred, it can be a powerful financial planning tool.

While a general rule of thumb is to have a policy that covers 5–10 times your annual income, you should also consider:

• What resources would your loved ones already have? Are there any special needs?
• Would your dependents have enough money to cover day-to-day expenses?
• Would there be one-time and long-term expenses like funeral costs and college tuition?

You can learn more about life insurance and how much you’ll need in our article, Life Insurance: How Much is Enough?

It may be hard to believe, but life insurance is probably more affordable than you think—especially if you’re young and healthy. In fact, according to the Life Insurance Marketing and Research Association (LIMRA), a surprising 72% of Americans overestimate how much life insurance costs. Generally, the younger you are, the lower your premiums will be. But, the insurance company may also take into consideration factors like your health, lifestyle and family history. We can help you find a policy that fits your circumstances and your budget.

Some policies may require a quick medical exam, but many don’t require one. If you’re interested in a policy that doesn’t require a medical exam, we can help you find one.

Although an employer-provided policy may help, it may not be enough to cover everything. Plus, if you change jobs, retire or become unable to work, it won’t move with you—which means you’ll no longer be covered. We can help you determine whether you need supplemental coverage.

Term life insurance covers you for a specific period of time (term). You can choose terms like 10, 20 or even 30 years. Because your coverage lasts for a set time frame, it probably will be cheaper than a whole life policy for the same amount. If you pass away during the coverage period and you’ve paid your premiums, your beneficiaries will receive the amount you purchased. If you outlive the policy term and haven’t converted it to a whole life policy, no payment will be made to them.

Some people also refer to this policy type as “permanent insurance.” As the name implies, it covers you for your whole life. You’ll have a certain number of premiums to pay and they’ll be for a set amount. Once you’ve made all your payments, your policy will be considered “paid up.” It will stay in force until you pass, and the insurance company will pay your beneficiaries at least the amount of insurance you purchased.

As the name implies, this type of policy covers death or permanent injury resulting from an accident. It’s considered supplemental coverage. Most often, it’s added to your existing life insurance policy for extra protection. It doesn’t replace that policy. You can also purchase an ADD policy separately.

All of these are life insurance coverage for the military community.

SGLI stands for Servicemembers’ Group Life Insurance. Provided by the Department of Veterans Affairs (VA), it automatically covers:

• Active Duty
• Ready Reserve
• National Guard
• Cadets and midshipmen at the four service academies
• Members of the Reserve Officer Training Corps
• Members of the Commissioned Corps of the National Oceanic and Atmospheric Administration and the Public Health Service

VGLI stands for Veterans' Group Life Insurance (VGLI). It’s a low-cost term life insurance program for Veterans offered by the VA.

FSGLI stands for Family Servicemembers' Group Life Insurance (FSGLI). This is another program offered by the VA. As the name suggests, it’s coverage available for the spouses and dependent children of servicemembers covered under full-time SGLI. Dependent children get free coverage.

We can connect you with a licensed insurance professional to answer all your questions.