Life Insurance - What You Need and Why

What is life insurance? Life insurance provides a monetary benefit to a decedent's family or other designated beneficiary, and may specifically provide for income to an insured person's family, and cover burial, funeral and other final expenses. Life insurance policies often allow the option of having the proceeds paid to the beneficiary either in a lump sum cash payment or an annuity. People often wonder if they really need life insurance, and if so, why. We’ll answer those questions and more below.

Kearby Insurance in Yuba City answers questions about life insurance


How Much Life Insurance Do I Need?


Why is life insurance necessary and important? If you have a family, or others who depend on you, it’s vital that you plan for their care in the event something happens to you and you are no longer here to provide for them. Unless you have substantial savings, life insurance is the life raft that will keep your loved ones afloat after you’re gone.


How much life insurance do I need? This question is highly individualized and depends on the size of your family, your savings, your debt and other factors. It’s best to meet with your agent and go over the list of items that need to be taken into account to determine the proper amount of insurance to cover expenses.


Are there different types of life insurance? Yes - There are 2 types of life insurance policies.

  • Whole Life - This type of insurance is sometimes thought of as a combination of a life insurance policy and a savings or investment plan.

    • Protects your family against the destruction of your business or estate taxes after your death

    • Your policy has cash value.

    • The premiums are significantly more expensive than those of term life insurance (see below).

  • Term Life - This type of insurance is a contract between you and the insurance company for a set amount of time.

    • You pay a monthly premium for the policy (these can be as low as $15 and even less if you’re in good health) for the set amount of time and if you die during this period of time, the insurance company pays your beneficiary the amount of the policy.


There are 2 simple ways to save on your insurance premiums that are within nearly everyone’s reach:

  1. Be a Non-Tobacco User - Non-tobacco users can save as much as 50% on their insurance premiums, compared to their tobacco-using counterparts.

  2. Normal Body Mass Index Number - That nagging number can be a money saver when it’s within the “normal” range. That’s right, staying fit makes a difference on your waistline AND your insurance premiums!

Life insurance is an important piece of your planning. We understand that navigating the right type, amount, carrier and premium can seem overwhelming! We’re here to walk through the policies you may already have in place and help you find the exact products that best fit your needs and the needs of your loved ones.

Call us for a review of your current policies and to help you find the perfect products and policies to bring you and your loved ones peace of mind: (530) 674-3430.

Posted on December 19, 2016 .