What You Need to Know About Life Insurance

Since I have not yet reached the pinnacle point in my life where I have established wealth, life insurance is a must, especially since I have children.  I have such a peace of mind knowing that if anything were to suddenly happen to me, my children would be taken care of financially. Life insurance does so much more than offset funeral expenses when death occurs; it can also cover debts, final medical expenses, and it immediately creates an estate.  

Think about your most valuable asset.  Most people would say it’s their house or car and they protect those things with homeowners and auto insurance.  What about your ability to earn money? My greatest fear used to be something happening to me before I could get my family financially free.  Now that my income, or life is insured I no longer have those fears. Death takes such a toll on families, and for me the last concern during that time should be money when there are options to secure it now.

What You Need to Know About Life Insurance

Types of Life Insurance

Life insurance is marketed to the public as three different categories: industrial life, group life, and ordinary life.  Industrial life policies were designed to serve the industrial class or blue collar workers in the late 1800s until the 1950s. These policies offered burial insurance with a face amount of $3000 or less.  By the 1950s, employers started offering group life insurance.  These policies are written for employer groups and one policy covers all of the insureds.  Ordinary life insurance is marketed to individuals as temporary (term life) or permanent (whole life) policies.  Whole life policies accumulate cash value and allow you to take out policy loans, which is what people mean when they say they “borrowed against” their policy.  Life insurance policies have different provisions, riders, an options available.

Term life

Term life insurance provides a death benefit during a specific period of time, such as 1, 5 or 20 years. The face amount is payable only if death occurs during the covered term, and expires if the insured is alive at the end of the term.  These policies give you the most value for the least amount of money but have no cash value.

Whole life

Whole life insurance covers you for your whole life.  Premiums remain level but are higher than term insurance because these policies offer coverage for life and guaranteed cash accumulation.


A beneficiary is a person designated by the policyowner to receive the benefits from the policy.  A person can be an individual, business, charity, or trust. If you fail to name a beneficiary, the proceeds of your policy are paid to your estate by default, which is subject to estate tax.  The proceeds are then distributed according to your will, but if you die without a will then state law dictates how your assets are distributed.

Life Insurance for Businesses

A life policy can be purchased by a business to provide cash to continue the business if an owner dies or key employee dies, and to offer their employees a life insurance benefit.

Group Life Insurance

Group insurance offers different features than individual coverage.  The entire group is underwritten based on average age and gender. The insured members rarely have to prove insurability, which may require a medical exam.  A member of a group is eligible for coverage if they are a full-time employee, actively work, and have met a 90 day probationary period. An employee may have to enroll within a certain time period.  Keep in mind that if you become ill and can no longer work or change jobs, your work policy may not continue to cover you. You may want to consider purchasing additional, independent coverage.


Many millennials do not consider life insurance a priority because most of us are consumed with paying off debts like student loans, and there is only so much that our budgets will allow.  But millennials also haven’t worked long enough to contribute enough to a retirement account or have enough saved to take care of our loved ones if a loss were to occur. Go Fund Me should not be the go-to to cover final costs.

Life insurance is a safety net and allows you to financially protect your family in the event of death. There are different types of policies available so be sure your life insurance agent explains your options so you get adequate coverage.  My policy covers burial expenses, my house payments and other debts, and the remaining proceeds go to my children who will be financially secure until they become adults. Plus the younger you are the more advantage you have. If you are millennial aged you are likely to be considered “low risk” which means qualifying for coverage is easier and more affordable.

I really hope this post triggered you to either get protection or take another look at your existing policy.  For more information please feel free to reach out to me at thepresleypost@gmail.com.

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These are the designated parking options when visiting The Presley Post. 

Do not park in the lot behind our building. This is a violation and your car WILL BE TOWED at your expense. NO EXCEPTIONS.

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