Life insurance 101: The right coverage depends on your personal circumstances

Understandably, the subject of life insurance can be difficult to discuss. Like developing a will or designating a guardian for our children, it centers on the idea that we are no longer here to enjoy and care for our loved ones. No amount of life insurance can replace the emotional support we give the special people in our lives. However, it can provide them an income they can use to continue – and grow – in their lives. Consumers can select from a variety of life insurance policies and providers. Three common options are term life insurance, whole life insurance and universal life insurance. Term life insurance can offer coverage from one year to 30 years or longer, and is often purchased to provide funds for financial obligations such as a mortgage or a child’s tuition in the event the policyowner dies. A term policy contains no cash accumulation features. Whole life insurance generally provides coverage throughout a person’s life with level premium payments, as well as a level death benefit. Unlike term insurance, a whole life policy may gradually accumulate a cash value, which you may be able to borrow against while the policy is still active or cash in upon surrender of the policy. Universal life insurance offers more flexibility than whole life insurance. It allows policyowners to increase premium payments, subject to certain limits, which may increase the cash value of the policy. The death benefit may also be increased subject to continued insurability. Selecting life insurance protection that’s right for your situation is a deeply personal decision. Your loved ones’ immediate and future expenses, the income that will be lost if you die, and the amount of premium you can afford to pay are several of the factors that need to be considered. In the next three columns, I’ll address the term, whole life and universal life options in more detail. Visit www.amfam.com to find a Life Needs Calculator to determine individual life insurance coverage needs and to learn more about SimplyProtected Term life insurance and the entire portfolio of life insurance products offered by American Family Life Insurance Company, a member of the American Family Insurance Group. ____________________________________________________________________________________ Todd Stanley has been an agent for American Family Life Insurance Company since 2011. His office is located at 2500 Glenn Ave., #45, Sioux City, Iowa. Todd can be contacted at 712-274-1045 to learn more about the entire portfolio of life insurance products offered by American Family Life Insurance Company, a member of the American Family Insurance Group, home office Madison, Wis., 53783. Some products are not available in all states