Benefits can start now and extend beyond life, check out these top 5 things you need to know about life insurance.

1) There are different kinds of life insurance. Term life is the most
common—and generally the most affordable—it covers you for a set
time. Whole life builds value based on a set schedule—you can take a
loan or make a withdrawal from your policy when you need to, but
this could decrease the cash value and death benefit. There is also
universal life which earns interest on the cash value of the policy
while offering flexibility in monthly payments and variable universal
life that lets you invest your cash value in the stock market. You can
choose the one that’s right for you and your lifestyle.

2) People buy life insurance for a variety of reasons: replacing
income, paying off debts, leaving an inheritance and covering
final expenses, to name a few. Life insurance provides an
emotional benefit for the purchaser, and it provides a financial benefit for the beneficiaries. Your hopes and dreams for your loved ones can continue if you die unexpectedly. And, don’t forget that in a time of grieving, your loved ones may appreciate less financial stress.

3) Many financial professionals recommend at least 10x your
salary as a life insurance. Life insurance is available in many
amounts, so you can pick a death benefit that meets the needs of your unique family. Try Nationwide’s life insurance needs calculator.

4) Most employer-provided life insurance is not portable. If your
employer allows you to get life insurance during your benefit
enrollment period, keep in mind that the average American worker
tenure is four years (according to the Bureau of Labor Statistics,
2020). Getting a life insurance policy outside of work allows you to be covered regardless of employer.

5) Life insurance may not cost as much as you think. According to a
recent study from LIMRA (LIMRA Insurance Barometer Study 2022), people overestimated the cost of life insurance by 3x. As an example, a $500,000 term life insurance policy for a healthy, 40-year old non-smoking woman could cost around $27 a month. Prices go up the longer you wait.

And a bonus tip. Payouts to beneficiaries are typically tax-free, so that’s one less thing they will need to worry about.

To get a quick quote on how much a term life policy could cost, visit
Nationwide

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