Life Insurance: Protect What Matters Most

Couple learns about life insurance from a WFG Agent

Life insurance is a crucial part of a strong financial strategy, providing proper protection for you and your loved ones. Explore the different types of coverage available and discover how the right policy can help safeguard your family's future. Whether you're getting coverage for the first time or updating an existing policy, we’ll help you find a solution that fits your needs and goals. Learn about different types of life insurance for beginners and find a policy today.

When it comes to the best type of life insurance for an individual, there is no one-size-fits-all. How much and what type of coverage is needed is based on the individual and their:

Age
Health
Income, current financial situation
Number of dependents

Furthermore, the life insurance policy most suited for an individual may change over time. Major life events like getting married, divorced, having children, or changing your income can all influence your life insurance policy.

Based on these considerations, a basic rule of thumb is to have enough life insurance coverage to provide approximately 10 times your annual household income. For example, if the current household income totals $50,000, consider having a total of $500,000 in life insurance protection.

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42%

of American adults say they need life insurance or more of it.

56%

of households earning under $50,000 per year have a life insurance need

102 million

American adults have a life insurance need-gap

Life insurance comes in many forms to fit different budgets, lifestyles, and financial goals. Some individuals may need coverage for a set period, while others require long-term protection with added flexibility. At WFG, our experienced agents work closely with clients to find policies that align with their needs and budget. Let us help you find the right plan to safeguard your future.

Two of the most common types of life insurance are term life insurance and permanent life insurance.

Term Life Insurance

Term life insurance offers individual life insurance protection for a specified number of years (i.e., term). This type of insurance is usually less expensive than permanent insurance with the same face value. However, term insurance does not accumulate cash value.

Permanent Life Insurance

Permanent life insurance, including whole life coverage, remains in effect until the policyholder’s death as long as the premium payments are made, unless the policy lapses or is surrendered. Most permanent life insurance policies also have some type of savings component that can build cash value over the life of the policy.

Tax-Free Death Benefit

Lower Premium

Access to Cash Value

Guaranteed Minimum Interest Rate¹

Market Participation²

Flexible Premium Payments³

Yes

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1 Varies on the type of permanent life insurance.

2 Depends on the type of permanent life insurance. Not all permanent insurance participates in the stock market or index funds.

3 Whole Life Insurance does not allow for flexible premium payments. Subject to certain limitations, premiums may be increased, decreased, skipped or stopped on other types of permanent life insurance policies, such as universal life insurance. However, the risk of a policy lapsing increases if regular premium payments are not made.

When working with an agent to assess your life insurance needs, consider these questions and answer them honestly:

How much long- or short-term debt do you have?
What are your long-term goals?
How much of the insured’s income will be needed and for how long (how many years)?
How much do you want to set aside for funeral costs and an emergency fund?
Do I have any pre-existing health conditions that may affect my premium rates?
How flexible is the policy in terms of adjusting coverage levels?
What assets do you have that may be able to cover these costs?

Why do I need life insurance?
Life insurance can replace your income and ensure your family's financial needs are met even after you've passed. A policy’s benefit may help pay off outstanding debts such as mortgages, student loans, credit cards and medical expenses. A life insurance policy may also offset childcare expenses and provide for your children's education.

At what age should I apply for life insurance?
Most people benefit from life insurance when they have financial dependents or significant financial obligations. However, that doesn’t mean you don’t need it if you’re single or don’t have children. Ideally, applying for life insurance as a young and healthy individual will allow you to lock in a policy with lower premiums. We encourage you to speak to an insurance agent now to see if you can benefit from life insurance and then touch base to review your needs again when you get married, have kids or buy a home.

How do I compare different life insurance policies?
Deciding on a life insurance policy for the first time can feel overwhelming, but you don’t need to do it alone. WFG life insurance agents are here to help. They are happy to review the different types of policies and coverage amounts based on your needs and budget.

Which type of life insurance is best for me?
Term life insurance and permanent life insurance, such as whole life insurance, serve a different purpose. Term life insurance covers a specified term, such as 10, 20 or 30 years and offers higher coverage amounts for a lower premium than permanent life insurance. Permanent life insurance provides lifelong coverage for as long as premiums are paid. Before deciding, talk to a WFG agent to help you as you consider your budget, preferred coverage duration and goals.

What happens if my health changes after I buy a policy?
Most types of life insurance policies are based on your health and other factors at the time you apply. However, if you switch policies after a health change, your new premiums may be higher (or lower) based on your updated health status. Always work closely with your WFG agent and ask how they can help you to determine how your health may affect your policy.