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Do I need life insurance?
Do you have bills, a car loan, mortgage or family members who depend on your income? If you were to die suddenly, what kind of financial hardship would result? Would your spouse or children be left without basic support? Would your burial costs impose undue financial hardship on others? As uncomfortable as it is to think about these questions, they are at the core of sound life insurance decisions. If you have dependents or a spouse who depends on your income, then you need life insurance.
Life insurance provides a certain amount of money (called the "death benefit") upon your death to someone you select as your beneficiary. In return for this protection, you pay the insurance company periodic payments, known as "premiums." The premium amount generally depends on such factors as the amount of coverage you selected (how much money your dependents will receive), your age, medical history and whether you intend to build up cash value in your policy. Some policies may require a medical exam. Securing a policy when you are younger and in better health may be better than waiting until you are older and have health issues that will make insurance more expensive—if you can qualify. You also may consider pre-paying for funeral and burial costs so your family does not have to pay after you die.
Tip: If you have incurred debts under your name only, your children will not be responsible for them when you die. Your spouse may or may not responsible for your debts, depending on community property laws in your state. Creditors may try to collect from the estate, if there is one.
Do I have enough?
 This calculator will help you determine whether you have enough life insurance.
If you have life insurance through your employer, be sure to ask whether that coverage will continue when you retire or if you leave your job. Your employer may offer continuation options. Otherwise, you may want to purchase your own policy that is not tied to your job.
Remember: stay-at-home spouses need life insurance, too, so the surviving spouse can pay for the work they do at home.
What type of life insurance is right for me?
The two most popular types of supplemental life insurance are term life insurance and whole life insurance. You can learn about both types of life insurance at the UnionSecure.com site, a partnership between Union Plus/Union Privilege and Union Labor Life Insurance Co. (ULLICO). Some agents also sell insurance as a retirement investment so you can build up cash equity to use later in life.
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