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Life Insurance: 4 Things You Need to Know

This blog post was written as part of a sponsored program for State Farm®. All views expressed are entirely my own.
Life Insurance: 4 Things You Need to Know

It wasn’t until I faced a life-threatening health condition that I decided to get serious about my family’s financial affairs. Although most people would agree that they need life insurance, only a fraction actually have coverage.

As we celebrate Hispanic Heritage Month, I’m reminded how my Latino culture places a strong value on family and taking care of our loved ones. Growing up in a Latino home, I was always reminded that family comes first. My parents worked hard to provide for our needs, and instilled in me ethics that helped shape my character. It has also influenced the decisions I make in our home and our finances.

One of those decisions was creating a plan that ensures my family is taken care of in my absence. I wouldn’t want to create a financial burden for my family, which is why having life insurance coverage became a need, and no longer something I wanted. I know that money won’t be able to replace me, but knowing that my family will have financial support gives me peace of mind. Life insurance can be one of the best ways to protect our families, and I’m grateful that I’m able to do this for mine.

As harsh as it may sound, the only thing we’re guaranteed in life is death. Yet it’s the one event that we least prepare for. If you’re not sure where to begin, here are four things you need to know when looking into life insurance.

Term vs. Permanent

You’ll need to determine whether you want term life insurance or permanent life insurance. Term life insurance provides coverage for a specific period of time. Permanent life insurance, also referred to as cash-value insurance, provides coverage during your lifetime. Personally, I have opted for term life insurance, but what you decide should depend on your family’s specific needs.

Determine Your Beneficiaries

The main purpose of life insurance is to ensure that your dependents have financial support in your absence. A beneficiary can be your spouse, your children, your estate, and even a charity. If you choose multiple beneficiaries, determine how you want the proceeds distributed. It’s also a good idea to review your policy when it renews to ensure that your beneficiary information is current.
Life Insurance: 4 Things You Need to Know

How Much Coverage You Need

How much income will you need to replace? Do you want to ensure your children have financial support for college? Do you have outstanding debt that will need to be paid off? Even if you don’t have a job that provides financial support right now, what you physically do for your family is valuable and will likely need to be replaced. If you need assistance, check out this calculator to help you get a general idea. A State Farm agent can also help you determine the level of coverage that’s right for your family.

Understand the Terms

Once you figure out what you need, sit down and carefully examine your policy. If something is unclear to you, don’t be afraid to ask your insurance agent questions. I also suggest reading the article Do You Really Need Life Insurance? – to get more insight on this topic. It’s best to be informed, and address your concerns early on.

Do you have life insurance coverage? I’d love to hear your tips and experience!

This blog post was written as part of a sponsored program for State Farm. All views expressed are entirely my own.

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Tiffany Locke

Tuesday 24th of January 2017

Choosing who your beneficiaries are is definitely something to take into consideration when you are determining how you want the proceeds distributed. Finding a life insurance company that has a plan that works best for you and the people you care about seems like an important decision. I would imagine that it would be best to find the way that you can help the people you care about the most and make sure that the life insurance you get will be the best one for taking care of them.

insurance companies

Wednesday 18th of January 2017

This is the perfect website for everyone who hopes to understand this topic. You know a whole lot its almost hard to argue with you (not that I really will need to…HaHa). You definitely put a new spin on a subject that has been discussed for years. Great stuff, just excellent!

Time for a Financial Checkup - The Latina Homemaker

Thursday 3rd of November 2016

[…] Life Insurance: 4 Things You Need to Know ( […]

Jon Lopez

Thursday 20th of October 2016

I have 5 kids. I was looking at them the other day, and I thought what would my family do without me. I need to make sure they are taken care of. It would be nice to make sure my kids can go to college if something was to happen to me. I'll be sure to get some coverage this week. You can never be too safe.

Tyler Meredith

Wednesday 5th of October 2016

I like what this article mentions about the coverage and how much you actually need. it makes sense that it could be beneficial to review how much you currently earn and spend to make sure the life insurance would be able to cover all the expenses. I'll have to keep this in mind when looking at different policies and options as I want to make sure we get good coverage.