Life insurance is a basic building block of your finances. These quick tips can help steer you toward a life insurance policy that works for you.
Article: 4 minutes
Updated: November 18, 2024 Published: August 28, 2020
By: Matt Lyon Reviewed by: Editorial contributors
Information courtesy of USAA Life Insurance Company and USAA Life Insurance Company of New York.
Unfortunately, many Americans don't carry any life insurance. Not having it can leave loved ones at risk if someone they depend on financially dies unexpectedly. The bottom line is that life insurance gives families cash when they need it most.
Video Duration: 1 minute 50 seconds
Life insurance is a basic building block in our finances that shouldn't be overlooked. If you're financially responsible for taking care of someone like a partner, a child or an aging parent, you may need life insurance.
How can life insurance help me? Not having life insurance can leave loved ones at risk if someone they depend on dies unexpectedly. Life insurance can give your family the money they need to cover necessities like groceries, mortgage or rent, and other basic living expenses.
How much life insurance do I need and what kind? There are two types of life insurance policies: permanent life and term life. A permanent policy is meant to last your entire life. A term policy lasts for a certain duration to help protect family and financial needs that will change over time.
When you buy life insurance, a good starting point is to get enough coverage to pay off all your debts and replace your annual income for at least five years. This should give your family enough money to keep things going after you're gone.
If you don't already have life insurance, term life insurance may be the best kind to consider. You can set the term based on what you want to protect, like the length of your mortgage or until your youngest child is old enough to be financially independent.
Isn't life insurance expensive? It's a common belief that life insurance is expensive. In fact, people often overestimate the cost of life insurance by as much as three times its actual cost. But the truth is that life insurance can be an inexpensive way to protect your family when you're no longer here.
To see what your life insurance needs are and how affordable it can be, visit usaa.com/life or call an agent at 800-531-LIFE (5433) today!
Description of visual information: [Life insurance and annuities provided by USAA Life Insurance Company, San Antonio, TX and in New York by USAA Life Insurance Company of New York, Highland Falls, NY. All insurance products are subject to state availability, issue limitations and contractual terms and conditions. Each company has sole financial responsibility for its own products.
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Most American families, when trying to figure out what a new normal looks like after losing a loved one, still have basic financial needs that must be met. They need a roof over their heads, groceries and other living expenses paid for. Without money from life insurance, many American families would feel significantly impacted within six weeks of the loss of a primary breadwinner.
Don't be overwhelmed by the conversation if you don't currently have life insurance. Keep it simple to start.
Here are a few quick tips for those starting out with life insurance:
These tips should help you be more confident in your life insurance search. USAA is here to help with tools that can help you calculate your life insurance needs. You can also reach our team of life insurance specialists who can provide more information and help get your coverage in place. Simply call 800-531-LIFE (5433).
See what you need to help protect yourself and your family.