Life Insurance Basics

What is life insurance?

Life insurance provides your family with money to pay your debt, mortgage, funeral expenses and more if you pass away. You pay your insurance company a premium, or bill. In return, your beneficiaries (the person/people you select) will receive the death benefit when you pass away. The death benefit is the amount of the policy. There are two different types of life insurance, term and permanent.

Term life insurance guarantees coverage for a specific amount of time, like 10, 15, 20, or 30 years.

Permanent life insurance includes whole or universal life, and provides lifetime coverage that builds cash value, similar to how you build equity in your home.

How does it work?

You choose the amount of money you’d like your beneficiaries to receive if you pass away.

If you choose a term policy… 

You select a policy term (10, 15, 20, or 30 years) and the amount of money you’d like your beneficiaries to receive if you pass away during that time.

If you choose a permanent policy… 

If you continue to make payments and don’t cancel your policy, you’ll receive lifetime coverage. You can also access the policy’s cash value (through loans and withdrawals) while you’re still alive, which is yours to use however you want. 1 

Why do I need life insurance?

Life insurance isn’t a one-size-fits-all product. People need it for different reasons, but here are the top five.*

  1. Burial/final expenses 
  2. Wealth transfer 
  3. Income replacement 
  4. Supplement retirement income 
  5. Pay off mortgage

*Source: 2020 Insurance Barometer Study, Life Happens and LIMRA

Answer a few questions to get a better idea of your needs before you talk to a rep.

Get started

How many school-aged kids do you have?

How much income would your family need replaced each year to maintain their quality of life? (Enter a dollar amount)

How many years would your family need this income?

0
0
20

Do you have a mortgage?

How much do you owe on your mortgage?

Not including your mortgage, how much debt would your family need to pay off?

$5,000
$0
$500,000

What percentage of your children's education would you like to cover?

0%
0%
100%

Approximately, how much do you have in readily available assets?

$5,000
$0
$1,000,000

How much life insurance do you currently have?

$0
$0
$2,000,000

Your Result

You're in good shape!

Based on your answers, it sounds like you've already taken important steps to make sure you're covered.

As your life changes, your insurance needs might change, too. Schedule a complimentary review below to make sure you're properly protected.

This information is for illustrative purposes only and is not intended to be a recommendation for any specific product or amount of coverage. It does not take into consideration all factors that may affect your specific need, including social security benefits and the time value of money.

Here's how much life insurance you may need:

Based on your answers, you're well on your way to making sure you're covered.

As your life changes, your insurance needs might change, too. Request a complimentary review below to make sure you're properly protected.

This information is for illustrative purposes only and is not intended to be a recommendation for any specific product or amount of coverage. It does not take into consideration all factors that may affect your specific need, including social security benefits and the time value of money.

Here's how much life insurance you may need:

Based on your answers, it sounds like you may benefit from a complimentary review to make sure you're properly protected

Fill out the form below to request an appointment.

This information is for illustrative purposes only and is not intended to be a recommendation for any specific product or amount of coverage. It does not take into consideration all factors that may affect your specific need, including social security benefits and the time value of money.

Request a review

How we incorporated education costs into our calculation: Calculations are based on national cost estimates for attending a 4-year public in-state university. As of 2019, LendEDU estimates a 4-year public in-state university costing roughly $100,000.

How we incorporated funeral costs into our calculation: Using national median funeral cost averages as a guide, we applied a $7,500 funeral cost to this calculation.

How much coverage do I need?

The amount of life insurance you need depends on several things, like the number of children you have, your mortgage, income and more. 

What type of life insurance do I need?

It depends on the stage of life you’re in.

As a first-time homeowner, a budget is very important to you. You’ve got a mortgage, car payment, bills and student loans. You may feel like life insurance isn’t something you need, or can afford, but you’d be wrong.  A life insurance policy is affordable, can help protect your mortgage and help pay off any debt you have if you pass away. A term policy gets you the protection you need with options to fit your budget. 

You share a home, finances, and dog-walking duty. With a combined income, you can put a dent in your student loans, pay off your car, and make some upgrades to your home. You’re still on a budget, but you’re putting some money away. If you pass away, a term or permanent (whole or universal) life policy can help your partner stay in your home, pay off your debt, provide for funeral expenses and more. Your rep can help with which type of policy is better for your specific situation.

Life has become a blur of kindergarten, after-school activities, nap time and kid-friendly TV. You need a bigger car, house and bank balance to handle it all. If you pass away, you want your kids to stay in the same house and continue their education. Term life insurance can help provide you with that security at a price that works with your current budget.

The kids are older, you’re close to retirement and you find yourself with more time, and money. As your kids start their lives, you want them to have everything they need, which includes being prepared if you pass away. A permanent (whole or universal) life policy can help provide them with money for your funeral, mortgage, debt and more. Plus, you can use the cash value that builds in a whole life policy while you’re alive to: 

1.  Help fund a child’s education 

2. Build up an emergency fund 

3. Supplement your retirement 

4. Start a business or expand an existing one 

The kids are out of the house, you’ve picked up some new hobbies and you’re about to be a grandparent. As you think about how to pass on your wealth and take care of your partner if you pass away, you may want to review your life insurance. If you don’t have life protection, a term policy may be your best option for your money. If you already have a term policy, it may be time to consider a permanent option. If you already have a whole life policy, you should look at the value to see if it still meets your needs. 

How much coverage do I need?

It’s different for everyone. The amount of life insurance you need depends on several things, like how many kids you have and their age, your mortgage, income and more.

Pro-Tip: "Many financial advisors recommend people have life insurance equal to 7-10 times their annual income." – Sheila Melzer, Vice President and Chief Actuary of Life and Health at COUNTRY Financial

Policy amount = Your annual income x 10

What factors impact the cost of life insurance?

Several things affect your life insurance costs, but these are some of the most common. Your:

  • Age
  • Occupation
  • Health
  • Family medical history
  • Lifestyle

Remember: Life insurance is never as affordable as it is today. 

40%

The percentage of those who wished they purchased life insurance when they were younger

Source: 2020 Insurance Barometer Study, Life Happens and LIMRA

How can I request a quote?

Reach out to your rep. Theyʼll help you understand your options and select what works for you.

COUNTRY Financial® is the marketing name for the COUNTRY Financial family of affiliated companies (collectively, COUNTRY), which include COUNTRY Life Insurance Company®, COUNTRY Mutual Insurance Company®, and their respective subsidiaries, located in Bloomington, Illinois.

Term Life Insurance: ICC17(RCT), RCT(ND17), and RCT(FL17) 

Whole Life Insurance: ICC18(WL) 

Universal Life Insurance: ICC19(UL)

Policies issued by COUNTRY Life Insurance Company® and COUNTRY Investors Life Assurance Company®, Bloomington, IL.

1 Policy loans and withdrawals decrease the cash value and face amount of the policy. The decision to purchase life insurance should be primarily based on a need for the death benefit. Policies are not an investment and are not appropriate as a replacement for retirement savings accumulation. 

This website provides a brief and general description of term life, whole life and universal life insurance policies available from COUNTRY Life Insurance Company® and / or COUNTRY Investors Life Assurance Company®. Life insurance policies and/or riders and features have limitations and are not available in all states, policy terms and conditions may vary by state, and are subject to underwriting approval and product minimums. This is not a statement of coverage or offer of insurance. Policies contain exclusions, limitations, reductions, and benefits, and terms for keeping them in force. For costs and complete details of the coverage, contact your representative.

ULWEB2 (07/20)