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Life Insurance
As you strive to reach your goals, take time to consider a serious question: What would happen to your loved ones if you died today? How would they be affected emotionally and financially? Perhaps you can’t prepare them for the grief, but through life insurance, you can protect them financially. And that can make all the difference.


What is life insurance?
Insurance is a risk-transfer mechanism. When you pay your premium, your insurance company spreads your risk across a group of people to protect you and your family from potential financial difficulty.  

Who needs life insurance?
Chances are, you should have life insurance. Even if you already have an employer-sponsored plan, it may not be enough to protect your loved ones or it may not be in effect when you need it most. If you fit in the following categories, you should seriously consider life insurance.  

Breadwinner
If your loved ones depend on you for part or all of their financial needs, it’s especially important to purchase a life insurance plan large enough to protect them in the event of your death.  

Nonworking spouse
Even if you don’t bring in a paycheck, your services around the house (house keeping, childcare, etc.) have a market value of up to $36,000 per year. With life insurance, you can prevent the additional financial stress of providing those services in the event of your death.  

Children
With the right life insurance plan, you can start your child off on the right foot financially. You can protect the child’s future insurability and allow them to build cash values and lock in low life insurance rates for life. In addition, you can protect your family from financial distress in a difficult time.  

Single
Though you may not have anyone who depends on your income, you probably have loved ones who would pay your final expenses and debt in the event of your death. Life insurance is a good way to prevent the additional stress that this would cause for the people who care about you. Also life insurance is a great way to leave a caring legacy for your loved ones.  

Elderly
Life insurance can be a good way to protect your loved ones from financial difficulties in the event of your death. You can provide for your own burial and final healthcare expense and leave a lasting financial legacy as a gift to your loved ones.  

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Why life insurance?
Life insurance is an essential part of every financial plan. It allows you to:  

1. Protect your loved ones
With life insurance, you can make sure your loved ones are taken care of no matter what.

Final expenses
Funeral costs, medical bills, estate taxes and debts can leave your loved ones in financial difficulty. Your funeral alone may cost as much as $10,000. Life insurance can provide the funds your loved ones need to offset these expenses.  

Quality of life
Life insurance provides money when it is needed most.  When a breadwinner passes away, many families have a hard time making mortgage payments, affording groceries and maintaining their everyday lifestyle.   

Goals and dreams
With life insurance, you can protect the dreams of your loved ones, including retirement, college education, vacations, career change and more.  

Peace of mind
Knowing that they will be taken care of financially no matter what can give your family members peace of mind. Also leaving a legacy can show them that you care enough to plan ahead.  

2. Protect yourself
Life insurance can protect your financial future as well as your family’s.

The sooner you buy, the cheaper it will be
The younger and healthier you are, the more affordable your life insurance premiums will be. We encourage you to lock in low rates as soon as possible, so you can afford to build in flexibility, options to increase your coverage and waivers to protect you against disability and other potential problems.  

Cash accumulation
With many permanent life insurance products, you can accumulate cash values that you can use for retirement savings or other needs. The sooner you purchase these products, the more time your cash values will have to grow.  

Your future insurability
Protect yourself with insurance when you’re young and healthy, then even if you become ill in the future and wouldn’t qualify for coverage or would have to pay too much for premiums, you will already have locked in low rates.  You should also be sure to buy the proper riders, so you can increase your coverage in the future without passing any medical exams.  

Your peace of mind
What would your family do without your income and contributions? Owning life insurance can provide great comfort throughout your life to know that if something happened to you, your family will be protected financially. 

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What kind of life insurance is right for you?
The two main categories of life insurance are term and permanent. Explore which product best suits your needs with the following chart.      

Term Permanent
Length of Coverage Provides death benefit protection for a fixed period of time Provides death benefit protection for life as long as premiums are paid.
Cost

Premiums are often lower initially but increase over time

Premiums are often higher initially but can stay level throughout the life of the contract

Common Uses Often used to cover short-term needs.  Also used when the life insurance need is great and ability to pay premiums is limited A better choice when your need for protection remains the same or increases in the future 
Cash Value Does not build cash value Builds cash value, which can be used to supplement retirement income or for financial emergencies
Other Features Can be converted to permanent life insurance without providing evidence of insurability (subject to certain limitations) Can be used to leave a legacy or create an immediate estate    

 

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How much coverage do you need?
Contact a Modern Woodmen representative for a complete financial needs analysis to determine the amount of life insurance coverage that is right for you or estimate your needs with this calculator:  

Life Insurance Needs Calculator >>>

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How much does life insurance cost?
Cost of life insurance depends on a variety of factors, but a few general rules of thumb are:  

  • The younger and healthier you are, the cheaper your premiums will be.
  • Term life insurance is cheaper initially, but in the long run, permanent life insurance is more affordable.
  • The amount of your premium is directly related to the amount and type of coverage you purchase.  

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How to purchase life insurance
Contact a Modern Woodmen representative to evaluate your life insurance needs and help you purchase the right life insurance certificate for you.

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http://www.modern-woodmen.org/FinancialPlanning/Topics/Pages/LifeInsurance.aspx