Individual Life Insurance

What is life insurance and why do you need it? The short answer is that having this type of insurance in place is the best way to protect your loved ones financially if you pass away prematurely. If you have a spouse and/or children who rely on you financially, having a security net to safeguard them should a worst-case scenario happen simply makes sense.


Protecting the Financial Future of Your Loved Ones

No one wants to think about the possibility of their life being cut short, but the reality is that tragedy can befall any one of us at any time. If you are a primary or even secondary earner in your home, the sudden loss of your income could have a devastating impact on your loved ones and their future.

Depending on the scope of your policy, being insured can allow your spouse and children to maintain their lifestyle and can cover the costs of mortgage payments, college, medical expenses, debt, and more.

Buying Time and Options

Even if the death benefit allowed for in your policy is more modest, having any insurance is better than having none at all. Ensuring even a small financial security blanket is in place can give your family more time to adjust and figure out next steps, such as finding a new job or downsizing to a smaller home.

What you don’t want is for your family to be in a situation where they have to endure a dramatic change in circumstances right away. Having time and options can make the difficult transition following the death of a loved one somewhat more bearable.

How Does Life Insurance Work?

The death benefit set out in your policy represents a guaranteed lump-sum of cash that your family will receive following your (theoretical) demise. A policy can deliver a pre-determined sum of money that can range from a few hundred thousand dollars into the millions. Since death benefits are not taxable, a $1 million policy will yield a full $1 million in proceeds for your family.

Term vs. Permanent Insurance Options

There are two types of insurance you need to consider: a “term” policy covers you for a set period of time, while a “permanent” policy provides coverage for your entire life as long as the premiums are paid. A term plan will be cheaper, but permanent insurance earns interest and can be an excellent long-term investment.

Choosing a Beneficiary

Typically, a beneficiary will be an immediate family member, but it doesn’t have to be. You can choose to designate a charitable organization, a trust, or even a close friend. You can also name multiple beneficiaries or a contingent beneficiary who would receive death benefits from your policy in the event that the primary beneficiary dies.

If you would like us to calculate an insurance quote for you, contact us today at ISU Armac. We will help you to come up with a coverage plan that is in line with your budget and with your family’s needs.  

like insurance

Insurance Quote Request