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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.

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The Foundation of a Sound Financial Plan

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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.

LIFE INSURANCE

QA