Life insurance protects your financial future. It provides
the resources your family or business may need to pay
immediate and continuing expenses when you die.
There are different types of life insurance and choosing
a policy is an important decision. You should begin by
evaluating the ongoing and future financial needs of
those who depend on you. Then become familiar with the
various policies available and how they work. You’ll be in
a better position to make a selection best suited to your
financial needs and those of your family.
The American Council of Life Insurers (ACLI) has
prepared this guide to help you understand the types of
life insurance available and what questions to ask when
you’re buying life insurance.
AmericAn council of l ife insurers
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101 constitution a venue, nW, Suite 700, Washington, Dc 20001–2133 www.acli.com
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As you prepare to buy a life insurance policy, evaluate
your ongoing and future financial needs and review the
products. To begin, ask yourself some basic questions:
Why do I need to buy life insurance?
If someone depends on you financially, the likelihood is
that you need life insurance. Life insurance provides cash
to your family after you die. The money your beneficiary
receives (the death benefit) can be an important financial
resource. It can help cover daily living expenses, pay the
mortgage and other outstanding loans, fund tuition, and
ensure that your family is not burdened with debt. Having
a life insurance policy could mean your spouse or children
wouldn’t have to sell assets to pay bills or taxes. Another
advantage is that beneficiaries won’t have to pay federal
income taxes on the money they receive.
How much life insurance do I need?
Everyone’s needs are different. A life insurance agent or
financial advisor can help you determine what level of
protection is right for you and your fam