Do I Need Life Insurance?

Mature couple looking for life insurance with RBP

Life insurance needs vary depending on your personal situation. If you have no dependents, you probably don’t need life insurance.  However it can still be useful tool for retirement planning, estate tax payoff, and handling your final expenses.

If your salary is important to supporting your family, paying the mortgage, other recurring bills, or sending your kids to college, life insurance is important to ensure that these financial obligations are covered in the event of your death.

How Do I Choose A Length of Coverage?

Your coverage length will depend on your individual circumstances. Factors you should consider include your age, your spouse’s age, your children’s ages, the length of your financial obligations (e.g. mortgage and student loans) and the number of years until retirement.

You will want to choose a term period that covers all of the above factors. For example, if you have a five-year old child and you wish to support that child through college and perhaps graduate school, you may need a policy term period of 20 years or more.

Accidental Death Benefit Rider

The accidental death benefit rider is an optional policy provision that pays an additional amount over and above your policy coverage amount in the event the insured’s death is caused by an accident. Even without this rider, your term life insurance policy will pay the stated death benefit in the policy if the insured’s death is the result of an accident.

Waiver of Premium Rider

The waiver of premium rider is an optional policy provision that provides for the payment of a life insurance policy’s premium in the event of the total disability of the insured. Age limitations and coverage maximums usually apply.

Accelerated Death Benefit Rider

The accelerated death benefit is a policy provision that allows for the advance payment of a portion of a life insurance policy’s death benefit in the event the insured is diagnosed as terminally ill. Requirements vary by insurance company. This rider is commonly an included feature of many term life insurance policies requiring no additional cost.


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