Life Insurance

Life insurance is a policy that can provide a financial safety net to loved ones after you pass away. In exchange for regular premium payments, your beneficiaries will receive a designated sum, known as the death benefit, upon your passing. Aflac term and whole life insurance policies offer competitive coverage that can help give policyholders peace of mind.

Life insurance can help protect your loved ones from financial hardship in the event you pass away unexpectedly. As long as you continue to make your premium payments, the insurance company will pay a lump sum of money to your beneficiaries upon your death.

Your beneficiaries can use the funds to help cover funeral expenses, everyday bills, lost wages, childcare, debts, college tuition, and more. While no amount of money can ease the grief of losing a loved one, life insurance can reduce the financial burden your family members may face.

Aflac offers a few types of life insurance policies, including:

Whole Life Insurance

Whole life insurance provides insurance for your entire life as long as you pay all your premiums. It includes a death benefit and cash value, which accrues interest at a fixed rate. Your beneficiaries can claim the death benefit upon your passing. Since there is no expiration date, you can't outlive a whole life insurance policy.

Term Life Insurance

Term life insurance guarantees financial protection for your family over a specific time period, such as 10 to 30 years. If you purchase term life insurance and pass away before the term comes to an end, your beneficiaries may collect the death benefit. Compared to other types of life policies, term life insurance often comes with lower premiums, but it doesn't last forever.

The type of life insurance policy you should choose depends on how much you want to pay and how long you'd like your coverage to last. If you're looking for coverage that typically costs less and that will last for several years or decades, term life insurance may be your best bet. However, if you don't mind paying more for lifetime coverage, consider applying for whole life insurance.

Life insurance rates depend on several factors, like your age, medical history, nicotine use, lifestyle, and the type of policy you choose. In general, the healthier and younger you are, the lower your policy premiums will be.

When getting a life insurance policy, it's crucial to consider how much coverage you should secure. While it's common for a policyholder to get coverage worth several times their salary, your individual needs may vary greatly depending on your family's financial situation and your personal financial goals. Consider working with a financial advisor who can help you calculate the appropriate amount of coverage that is best for you.

It may be in your best interest to obtain life insurance as soon as possible, especially if you have dependents. The younger you are when you invest in a policy, the lower your premiums will typically be. If you wait until you're older, you may have to settle for higher rates.

If you're the breadwinner and your family depends on your income, a life insurance policy is important. It's also worthwhile if you have children or own a home. And if you're a stay-at-home parent, a life insurance policy should be on your radar, as in the event of your passing it can help cover the cost of childcare, household duties, and other responsibilities you have.

The general rule of thumb is to purchase a life insurance policy that's at least several times your annual salary. Even if your employer provides life insurance, you'll likely need additional coverage. This is because many group life insurance policies are capped at one or two times your annual income.

While both individual life insurance and group life insurance serve the main purpose of providing a death benefit to beneficiaries, there are some key differences to take note of. Group life insurance is a type of coverage that's typically provided as part of an employee benefits package, while individual life insurance is a policy you can obtain on your own directly from a life insurance company.