Why you need life insurance
Would your family be financially secure without your income? Could you use another way to save for retirement?
Good questions. You can help make the road to financial security smoother, but the journey may begin with a conversation not many people want to have.
And they should.
Life insurance protects the ones who depend on you.
You may think life insurance is something you’ll get “later.” Like when you’re older. Or when you buy a house, or have a couple of kids. But it’s never too early to have a plan in place for your future.
Life insurance helps protect those who depend on you. Here’s how:
- They could continue their lifestyle, even though your income is no longer available.
- Your children’s college expenses could be taken care of, whether that’s now or in the future.
- They may be able to pay off debt – like your mortgage, or student loans for example.
- It acts as income replacement if your partner would need to stop working to take care of your family.
Know your life insurance options.
Life insurance death benefits are usually tax-free income, and can be used to supplement your family’s retirement savings, too.
Some policies accumulate cash value over time, providing tax-advantaged money to help meet your own retirement plan or emergency fund needs, too.
There are two types of life insurance to choose from:
- Term life insurance provides budget-based coverage for a specific “term” of time. This type of life insurance is appropriate for covering temporary expenses like consumer debt or your mortgage. Some term life policies can be converted to permanent life insurance policies.
- Permanent life insurance provides long-term coverage, plus tax-deferred cash value that you can access. Permanent life insurance policies usually come at a higher initial premium, but the cash value helps offset future out-of-pocket costs.
Whatever your goals, life insurance is an essential part of your financial plan. Your financial advisor can help you figure out which insurance policies are appropriate for your unique situation.
Because what matters most is taking care of those you love.
Use our life insurance calculator to see how much you need.
Wondering how much life insurance you need? Use our life insurance calculator to find out. Then call a financial professional who can walk you through the next steps and provide a life insurance quote.
Insurance products issued by Principal National Life Insurance Co (except in NY) and Principal Life Insurance Co. Plan administrative services offered by Principal Life. Securities offered through Principal Securities, Inc., 800-247-1737, Member SIPC and/or independent broker/dealers. Principal National, Principal Life, and Principal Securities are members of the Principal Financial Group®, Des Moines, IA 50392.