Life Insurance
Life insurance can help provide financial support for the people you choose after your death. Whether you are supporting a partner, raising children, caring for family, or planning a legacy, understanding the options can help you decide whether coverage fits your needs.
How does life insurance work?
A life insurance policy is an agreement with an insurer. In exchange for premiums, the insurer agrees to pay a death benefit to the designated beneficiaries if the insured person dies while coverage is in force, subject to the policy’s terms.
That money may help with ongoing living expenses, housing costs, caregiving, education, or final expenses.
What are the main types of life insurance?
Term life insurance
Term insurance provides coverage for a specified period. It generally pays a death benefit if the insured person dies during that period and typically does not build cash value.
Review what happens when the term ends, including whether renewal or conversion options are available and how costs may change.
Permanent life insurance
Permanent insurance is designed to provide long-term coverage, potentially for life, provided the policy’s requirements are met. These policies generally include a cash-value component.
Whole life and universal life are examples. Their premiums, guarantees, flexibility, and risks differ, so it is important to understand how a particular policy works and what is required to keep it active.
How much coverage might be appropriate?
Your needs depend on who relies on you and the financial support you want to provide.
Consider ongoing household expenses, debts, caregiving responsibilities, and future costs such as education. Then review savings, existing insurance, and other resources that may already be available.
An insurance professional can help you consider both the amount of coverage and how long you may need it.
Who can be a beneficiary?
A beneficiary is a person or entity designated to receive the policy’s death benefit. Depending on the arrangement, beneficiaries may include a partner, family member, trust, or charity.
You can generally name primary and contingent beneficiaries. A contingent beneficiary may receive the benefit if the primary beneficiary cannot, according to the policy’s terms.
Review your designations as relationships and circumstances change. Ask for professional guidance when naming a minor, a trust, or someone whose benefits could be affected by receiving money.
Questions to ask before choosing a policy
How long does coverage last?
Which premiums and benefits are guaranteed?
Could the cost change over time?
What exclusions or other conditions apply?
If the policy builds cash value, what fees or restrictions apply to accessing it?
What happens if I miss payments or decide to cancel?
Find an insurance professional
Connect with an LGBTQ+ or affirming insurance agent to discuss the people you want to provide for and the coverage that may fit your plans.