Life Insurance for Smart Dummies

Figuring out Life Is Nearly Impossible, Life Insurance Isn’t As Hard.  

Thousands of years ago, philosophers were asking one burning question: what is life? Today, we ask a similar question, but with one twist: what is life insurance? We are here to help you answer that question. 

Basic definition of life insurance: cash that goes towards your beneficiaries in the event of your death

What does it generally go towards: burial and final expenses, replaces income, creates generational wealth, covers related taxes and pays off mortgage


Factors to consider

Risk Classifications:

Preferred Plus – the healthiest category. 

Includes: height and weight must both be normal, normal lab results, no chronic illnesses, no immediate family members who died from cancer or heart disease before 60.

Preferred — excellent health, you fall into the category above but with a few caveats 

Caveats: if you are slightly overweight/being treated for blood pressure or cholesterol. 

Preferred smoker — you fall into the preferred plus category, but you have smoked tobacco this year

Standard Plus — your health is slightly above average

Standard — you have average health, where most people fall

Includes: Being overweight, a normal life expectancy, several minor health conditions, family members who died from cancer or heart disease before age 60, you’re probably in this category, too.


Standard smoker — your fall into the standard category but you smoke


Substandard — people who are in poor health

Includes: obese people and people with serious health issues.


35 years old or younger – Less than $30 per month.

40 years old – $30 – $40 per month.

45 years old – $50 per month.

50 years old – $75 per month.

55 years old – $120 per month.

60 years old – $200 per month.

65 years old – $350 per month.


General Coverage to Consider

Types of Insurance

Permanent/Whole Life: coverage for your whole life, generally more expensive

For: empty nesters and retired people


Term: recommended, policies for years at a time up to 30 years

For: single people, single parents, married people, married people with small kids 


Variable: a permanent life insurance policy with a cash-value investment component that act similar to a mutual fund, but it is only available within a variable life insurance policy 


Universal: a permanent life insurance with an investment savings element and low premiums that are similar to those of term life insurance



Do I need Life Insurance?

Probably, but especially if you…

Are the breadwinner

Are a single parent

Are a small business owner

Are a retired or older

Are single



Landing massage: You should absolutely invest into Life insurance and at minimum YOU SHOULD HAVE ENOUGH TO PAY FOR YOUR OWN FUNERAL. Rule of thumb: starting with coverage equal to your annual income multiplied by 10. 


Now that you have a basic understanding, connect with Mark and Eric.  They can answer your burning questions even further!


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