If you own a home, you need homeowners insurance. If you own a car, you need auto insurance. Pretty simple. But when it comes to life insurance, there isn’t one singular event that necessitates it, making it one of the more confusing forms of insurance. How do you know when you need it? Or if you need it at all?
We spoke to Chris Perrier, director of life insurance sales operations at AAA Northeast, about life insurance FAQs.
How do I know if I need life insurance?
“Everyone needs life insurance, but for different reasons,” Perrier said. “Some folks get life insurance when they’re looking to protect assets; some look to secure their family’s future or leave a legacy. Some people even use life insurance in the form of annuities to generate a lasting income.”
Bottom line, everyone should consider life insurance no matter their circumstances: married, single, kids or no kids. Life insurance is a safety net for your loved ones and gives you peace of mind knowing they’re secure if you’re no longer here.
Learn about AAA’s annuity products.
What are your tips for first-time life insurance buyers?
“Before you commit to any one insurance company, it’s important to do some research,” Perrier said. “Make it a priority to work with a great company that has a proven track record and offers great products and services at great prices.”
What should I consider before buying life insurance?
“I would first identify what you are looking to protect. In numerous cases, life events such as purchasing a home, getting married or having a child spurs interest in a policy,” Perrier said. “It is also important to evaluate what amount of coverage would be best for you or your family. Consider whether you are looking for protection for a certain amount of time or something more permanent. Once you have a better understanding of both time and overall coverages, reach out to a specialist to discuss the options that would best suit your family.”
Life Insurance 101
Your guide to understanding life insurance and why it's important to consider for your future.
What is term life insurance?
“Term insurance is mostly known as temporary insurance, meaning it will last for only a certain period of time, generally up to 30 years,” Perrier said. “Although it is just temporary, there are some benefits to it — particularly the cost. It is much less expensive than other products, however, it is generally purchased to protect the most valuable assets, such as your home.”
What is whole life insurance?
“Whole life insurance is permanent insurance that often offers cash value accumulation. Although it is generally the most expensive type of life insurance, it is permanent and is designed to be used for final expenses, or to leave a legacy for your family,” Perrier said.
I think I have life insurance through my job. Is that enough?
“In some cases, yes,” Perrier said. “However, you never know if you are going to leave your job, or if your job is going to leave you. It is always great to have some life insurance that you own so you can be sure your family’s financial future is secure. Talking with a life insurance specialist is always the best way to determine how much coverage you have, and whether that’s enough.”
AAA insurance experts are available to answer more of your life insurance questions. Get connected with one of our helpful insurance agents today.
Have more insurance questions? Check out our Ask an Insurance Agent series.
Based in Rhode Island, Sarah has been a copywriter and content producer with AAA Northeast since 2021. When she’s not scouring the best spots for all things food and drink or whipping up her own versions of tasty meals, you can often find her in the garden, planning her next trip or sipping on (another) hot coffee.
Related Articles
Trending Articles
NEWEST ARTICLES
