Life Insurance 101
The Basics, Plain and Simple
You don't need to be an expert to make a smart decision. You just need to understand three things: what it is, which type fits you, and how much to get.
Two Types. One Right Answer for You.
Every life insurance policy is either term or permanent. Here's what that actually means.
Covers a Set Period
You choose a term — 10, 15, 20, or 30 years. If you die during that window, your beneficiary receives the full death benefit. If the term ends and you're still living, coverage expires.
- Lower monthly premiums
- Ideal for income replacement, mortgage, and kids
- Sized using the DIME method
- No cash value — pure protection
Best for: Most people with dependents, a mortgage, or significant debt.
Lifelong Coverage
Whole life and universal life policies never expire. As long as you pay premiums, you're covered for life. They also build cash value you can borrow against tax-free while you're still living.
- Coverage guaranteed for your entire life
- Builds cash value over time
- Borrow against it — no credit check, no taxes
- Good for estate planning and lifelong dependents
Best for: High earners, estate planning, seniors, lifelong dependents.
How Much Do You Need?
The DIME method is the clearest way to size a life insurance policy. Add up these four numbers and you have a defensible coverage amount.
Debt
Add up all outstanding debts except your mortgage — car loans, credit cards, student loans, personal loans. Your policy should cover these so your family isn't left holding them.
Income × Years
Multiply your annual income by the number of years until your youngest child turns 18. This replaces your earning power during the years your family needs it most.
Mortgage
The remaining balance on your home loan. A paid-off home means your family keeps their home no matter what — that's peace of mind in a single number.
Education
Estimate college costs per child — currently $25K–$60K for a 4-year public university, more for private. Add it up and include it so your kids' futures stay on track.
Which Type Is Right for You?
Three common situations and the policy that fits each.
Young Family
If you have young kids and a mortgage, a 20–30 year term policy sized to the DIME formula is almost always the right answer. It's affordable, comprehensive, and covers your highest-risk window.
Business Owner
Two policies serve different purposes: a personal term policy protects your family; a key-person policy protects the business. If you're a partner, a buy-sell agreement backed by life insurance prevents a crisis when one partner dies.
Retiree or Estate Planner
If your kids are grown and your debts are paid, the goal shifts to estate planning. Permanent life provides a guaranteed death benefit, builds cash value, and passes wealth to heirs tax-efficiently.
Common Questions
Do I need life insurance if I'm young and healthy?
Yes — and that's exactly when it's cheapest. Rates are locked at the age and health you are today. A 28-year-old non-smoker pays a fraction of what a 45-year-old pays for the same coverage. Waiting costs you real money every year.
How does the payout work?
When you die, your beneficiary files a claim with the carrier and receives a tax-free lump sum — the full death benefit. There are no restrictions on how they use it. They can pay the mortgage, replace your income, fund college, or handle final expenses.
Can I get covered if I have health issues?
Often yes. Different carriers underwrite differently — one carrier may decline a condition that another approves at a standard rate. Terry works across 20+ carriers and knows which ones are best for specific health profiles. Don't assume you're uninsurable.
Doesn't my employer coverage count?
Not really. Group life through an employer is typically 1–2x salary, rarely enough to replace years of income. More importantly, it's not portable — it disappears the day you leave. A personal policy is yours regardless of employment status.
Ready to Get Covered?
Tell us a few details about yourself and Terry will show you exactly what coverage looks like — and what it costs.
Protect Your Family.
Let's Find Your Coverage.
Life insurance and employee benefits. No pressure, no commitment. Just real guidance from two people who pick up the phone and tell you the truth.
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