What type of life insurance is best for you

Step 1: This first section concerns the purpose and length of your life insurance needs.

Now that you know how much life insurance you need, the next question is "What is the most appropriate type of life insurance to buy?" While there are many factors involved in this decision, for most people it comes down to three key issues:

the duration of your need;
your personal risk tolerance; and
how large a premium you're willing to commit.

Amount of life insurance you will need in whole dollars (minimum policy issue limits may apply)

Determine the amount you need.


What is your age?
	Less than 35 years old
	Between 35-45 years old
	Between 45-55 years old
	Greater than 55 years old

What is the purpose of the life insurance death benefit? (check all needs that apply.)
	Income Replacement Replace income for survivors in the event of your premature death.
	Mortgage Protection Cover the remaining mortgage balance, leaving your home debt-free for survivors.
	Debt Protection Pay for major loans and family obligations in the event of your premature death.
	College Funding Assure that funds are available to provide for college expenses in event of premature death.
	Supplement Savings Build cash value to for emergencies and opportunities.
	Supplement to Retirement Accumulate tax-advantaged cash value to supplement retirement or other long-term needs.
	Estate Planning Estate Planning is a complex issue, usually requiring consultation with your attorney, trust officer and professional insurance advisor. A form of permanent insurance known as "survivorship" or "second-to-die" life insurance is often used in estate planning situations. To prevent the proceeds from increasing the estate, survivorship insurance is generally owned by a trust, and the death benefit paid when the last of the two insureds (usually spouses) dies.

How many years will you require insurance to cover the above needs?
	Less than 3 years
	From 3 to 10 years
	From 11 to 20 years
	Greater than 20 years

Step 2: This section concerns the amount you want to pay for life insurance coverage.

Step 3: This final section concerns your attitude about financial risk.

Step 4: Products of Interest

Time horizon, risk tolerance and premium paying preferences are among the many factors that determine which type of life insurance may best suit your personal needs and goals.

Your answers suggest that the following types of life insurance may be appropriate solutions. We have ranked them according to your preferences.

Choosing an appropriate type of life insurance is only one step in the development of working life insurance solutions. Since there are many complex and confusing issues involved, we recommend discussing with a financial representative before you finalize your insurance decision.

More Information

If you have personally owned life insurance, click here.

If you have employer provided group life insurance, click here.

For some thoughts on life insurance costs, click here.

NOTE: Discretionary income available to fund ongoing premiums may also determine whether term, cash value, or a combination of both, is the best, or most workable, solution. Term policies are generally convertible to cash value policies, without evidence of insurability, and may offer a short-term solution, until the money is available to convert to a more permanent solution. These are a few of the many ideas that your Principal Financial Group Representative is trained to help you work through.

What Type of Life Insurance is Best for You

Step 1: This first section concerns the purpose and length of your life insurance needs.

Step 2: This section concerns the amount you want to pay for life insurance coverage.

Step 3: This final section concerns your attitude about financial risk.

Step 4: Products of Interest

More Information