The Who, What, When, Why, and How of Life Insurance

By Michael Light (VP at Large)

Of all the types of personal insurance, “life” insurance seems to be the one most people have questions about.

What is life insurance? It is a contract agreement between a life insurance company and a policy holder that guarantees a payment to the policy holders’ beneficiaries when the policy holder dies. In more basic language, the insurance companies give an agreed amount of money to those you want to receive in the event of your death, and the client pays an agreed amount of premium to the carrier for the guarantee. Beneficiaries are often a surviving spouse or children.
Why do I need life insurance? The simple answer is to take care of our loved ones, especially those who would be most seriously affected if we were to die. In the case of a traditional family, a working father with a wife who cares for small children at home, the financial loss would be terrible. The money from life insurance would help make house payments, buy food, pay for the car, clothes, and utilities. It basically replaces the father’s income until the family can adjust and realign their financial circumstances.
Who should buy life insurance? This question can vary, but certainly anyone whose death would cause a financial hardship on others should buy life insurance.

Those who bring home an income that would still be needed when they die need life insurance. This applies to most married people and people who are responsible for children.
Those who are helping their kids go to college need life insurance. If your passing would cause them to have to leave school, life insurance could be a big help.
Any person whose funeral costs would fall to someone else needs a final expense policy to keep that financial burden off your children or loved ones.
Children are good candidates for life insurance policies. They are very young and typically very healthy. Their rates are inexpensive and often offer many additional coverage options that are not usually available for older people.

When should you buy life insurance? Usually, the sooner the better. Life insurance is rated (priced) primarily based on age and health condition. The younger we are, the cheaper the age rate. Also, there are certain diseases and conditions that make us non-insurable. Fortunately, there are a host of different types of life insurance policies that are custom-made for different age groups with different needs. It is not a one-size-fits-all product. Each person’s needs, desires, and dreams are vastly different. We can customize a plan for you and your family.
How can I buy life insurance? Our recommended way is to contact the Rollo branch or agent near you. You are always welcome at our local offices, or you can contact us via the phone or the website. The life insurance purchasing process is usually very quick and easy. Our friendly and professional team looks forward to working with you and answering your individual questions relating to the subject of life insurance.