Life Insurance 101

The 5 W’s of Life Insurance

There are thousands of articles out there on life insurance which cover the basics.  The who, what, when, where, why, & how. What you will notice is there is usually a particular bias towards a specific type of insurance. With only half the story being told. 

Today we are going to breakdown the 5 W’s of life insurance and how it all works.  You will quickly begin to identify which category you fit into. Thereafter, understanding your current needs and potentially your future needs.

WHO needs Life Insurance?

This question can be tricky because more times than not the concept is typically driven by the emotion of love. 

I would argue- Usually everyone initially needs life insurance.  But for the sake of argument let’s drill down to individual identities.

 Generally speaking, if someone is reliant and dependent on your source of income or contributions to maintaining a family you would definitely fit into the category of having a need here.

If something were to happen to the bread winner of the family, the rest of the family would suffer financially.

A simple way to answer this would be to ask the family, spouse or kids a difficult question.  What would happen if the bread winner suddenly passed away YESTERDAY. What’s the plan? Is there a plan?

Picturing this moment in the NOW will typically give you a clear picture. Most importantly, show how a families lifestyle may be impacted.

Will I be able to get the bills paid? Will I need to get a second job? Would I have to sell me house and start renting? What would I need to cut back on?

These are all critical things to consider and think about. So, having a plan like life insurance will definitely tackle the concerns and help someone sleep better at night. In turn, knowing their family is going to be ok and not be in a moment of chaos and anxiety. The unthinkable can happen at any given moment.

WHAT will Life Insurance do for my family

Life Insurance generally has one main purpose. And that’s to give you peace of mind that your family is going to be financially taken care.  That moment in all of our lives is inevitable.

The last thing you want is to leave behind a financial disaster for your family. You’ll learn more about this in the WHY section further down in this blog. This worst-case scenario can be devastating.

I like to compare life insurance to all other insurances. Health Insurance and auto insurance for example. We buy these types of insurances for peace of mind so that if something does happen, we don’t have to come out of pocket to pay for medical bills and car repairs.

 Life insurance is no different, we buy it for what it can and will do, we don’t buy it with the assumption that something bad will happen.

WHEN is the best time to get Life Insurance?

Generally speaking, Life Insurance premiums are calculated based on a person age and health.  The younger you are the cheaper it is.  Combine that with excellent health and you are in the golden window of opportunity to apply for the best health rated options.

Locking in coverage at a younger age gives you the flexibility to choose between multiple options whether its whole life or term life.  However, someone in their upper 70’s typically only has the option of Whole life and paying a higher premium because they are closer to the inevitable. 

Someone in there 30’s will be able to lock in a very low premium rate because the chances of them passing away in the short term are a lot slimmer than someone who is at risk of passing away in their 70’s.

So, the idea here is to take advantage of your age if you are young because health and age don’t typically go in the same direction with respect to time. 

If you decide to procrastinate rates will rise as you age and combined with inflation- not a fun dilemma to find yourself in at an older age.

WHERE do I go to get Life Insurance?

If you’re like most people what you want to do is Shop around, get rates and quotes to see where you stand with each company and ultimately make a sound financial decision to choose an option which is going give you the most coverage you need for the least amount of money. 

This process however can be time consuming because these assessments and process to get you those quotes can range anywhere from 25min up to an hour-long phone call. 

No one wants to call 100 different insurance companies to talk to 100 different agents and spend a hundred hours- sounds like a fulltime job if you ask me.

Luckily Viielentra has one of the most affordable and convenient methods of getting this done.

You can get a quote and apply in as little as 8 minutes without talking to an agent or any sales pressure.

Viielentra also offers value to their clients outside of life insurance where their tuition assistance program helps families reduce student loan debt another big problem in our country.

When price shopping and the range of prices amongst the top companies is typically with 2% of each other, choosing Viielentra is a no brainer because they provide a solution for your problems as an adult looking to protect your kids but they also provide a solution for your kids college education in the future.

WHY do I need Life Insurance?

This is arguably the biggest question that needs to be answered before we ultimately decide to pull the trigger and put some protection in place.

DEBT: Do you have a mortgage? Student Loans? Auto Loans? Other forms of Debt? You want to make sure at the minimum the sum of these forms of debt are takin care of as it can devastate your family otherwise. 

Especially a mortgage- making sure your family maintains a roof over their head after you pass away should be a priority.  A lot of time debt will fall on the shoulders of family and this can be overwhelming.

Income Replacement rule: Take your annual income and you want to multiply this by 10x- 20x. This is how much coverage you may elect to apply for- this would ensure your family will be okay without your income for the next 10-20years if God forbid something were to happen to you.

Older Folks- generally the same forms of debt can be talked about.  But for older folks we typically see they want to make sure their final expenses are taken care.  Considering the cost of Funeral and burial expenses. This way, the family does not need to come out of pocket to pay these expenses.

Today this cost is typically on average $10-15k and these expenses are set to rise with inflation.

Ready to get Started?

Visit Viielentra’s online platform and learn about the Free One Year Scholarship Program, we give to our clients absolutely free. 

Tuition rewards can give a massive tuition discount when your child is applying to college.  That is to say, while you keep them protected with the gift of Life Insurance

Get a quote and Apply in as little as 8 minutes.