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To help Americans better understand where insurance fits into their family
finances, LIFE and Newsweek, Inc. are proud to sponsor this brochure.
No one knows what the future holds. That’s why you need a plan to help
ensure that no matter what twists and turns life sends your way, you'll have a
financial safety net to protect you and your family.
This brochure provides information to help you guard against three of the
greatest financial risks we all face – becoming sick or disabled, living too long, or
dying too soon. We hope you find it useful.
The Foundation of a Sound Financial Plan
This brochure, originally published as a special section in Newsweek, is a service of the Life
and Health Insurance Foundation for Education, a non-profit organization dedicated to helping
consumers make smart insurance decisions to safeguard their families’ financial futures.
Learn more at www.life-line.org | 888-LIFE-777
>> DO I NEED IT.
If someone would suffer financially at your death,
you need life insurance. Whether you are a bread-
winner or a stay-at-home parent, you perform
valuable functions that would be expensive to replace.
>> HOW MUCH DO I NEED.
Most people want life insurance to cover three main
types of expenses: immediate expenses, such as
funeral expenses, taxes and outstanding debts
you’d want paid off when you die; ongoing expenses,
such as everyday living costs for things like food,
transportation, mortgage or rent payments, and;
future expenses, such as money to fund a college-
or retirement-savings plan. When you consider all
the things that life insurance proceeds need to fund
and how long the money would be needed, you
begin to realize that your need for coverage is often
10 to 20 times your annual income.
>> HOW DO I KNOW IF I NEED $250,000, $500,000 OR MORE.
Online calculators like the one offered by the non-
profit LIFE Foundation (www.life-line.org/lifecalculator)
can provide you with a general sense of your life
insurance needs. After you’ve done that, contact
a qualified insurance professional in your area.
A good insurance advisor will conduct a thorough
needs analysis and then offer recommendations
on the amount and type of insurance that would
be best suited to your specific needs and budget.
>> WILL I NEED TO REEVALUATE MY NEEDS OVER TIME.
Insurance needs change as events in your life
change, so you should evaluate your coverage
every few years, and especially after major
milestones such as getting married, having a baby,
buying a home, or getting a new job or promotion.
>> WHERE CAN I BUY IT.
Most people buy from an insurance agent or
other financial advisor who can conduct a needs
analysis, explain coverage options, and find
the right products to fit your specific needs.
Buying over the Internet or through an employer-
sponsored program are other options you may
want to consider.