Life insurance is a contract between you and an insurance company. In exchange for regular premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to your beneficiaries upon your passing. This financial support can help cover expenses like funeral costs, outstanding debts, or provide income replacement for your loved ones. It’s a way to protect your family’s financial future.

The best type of life insurance depends on your personal situation and financial goals. For long-term coverage, whole life insurance offers lifetime protection and builds cash value over time. For more affordable and temporary coverage, term life insurance is a good option, providing coverage for a specific period, such as 10, 20, or 30 years. A combination of policies or specialized products tailored for veterans might also be available. It’s important to assess your needs and consult a professional to determine the best fit for you.

The amount of life insurance you need depends on several factors, including your income, debts, and family’s future expenses. A general guideline is to have coverage that is 7 to 10 times your annual income. However, you should also consider specific needs like mortgage payments, college tuition for your children, or medical expenses. A personalized needs analysis can help you calculate the right amount to ensure your loved ones are financially secure.