How to Choose the Right Life Insurance Policy

Investing in the right life insurance can help beneficiaries and family members manage the financial ramifications of an insured’s death. The right policy can offer relief and allow them to focus on mourning and remembrance. If you have children, a spouse, elderly parents or others who depend on you, selecting an appropriate policy can be especially important.

Life insurance comes in many forms. Policies may provide temporary or lifetime coverage, depending on your chosen policy. Furthermore, many options may include financial incentives, the flexibility to make changes and other opportunities. At Marshfield Insurance Agency, we can help you understand your choices and make selections based on your unique needs and goals.

What Types of Life Insurance Are There?

To begin, you should understand that there are two primary classifications of life insurance:

• Term life insurance—When you purchase one of these policies, you’ll establish coverage for a set period of time, such as 10, 20 or 30 years. Term life insurance often comes with relatively affordable premiums. There may be opportunities to extend coverage as the end of the policy’s period approaches, but these capabilities can vary depending on policy and insurer.
• Permanent life insurance—As its name suggests, this type of life insurance can provide steadfast financial security throughout an insured’s lifetime. There are many subclassifications of these policies, including universal, whole and final expense life insurance, each potentially offering varying incentives and benefits. Many permanent policies come with a savings component, allowing the policyholder to access the policy’s cash value while still living.

5 Scenarios and How They Might Affect Your Coverage Needs

When considering the various types of life insurance policies on the market, you’ll likely want to thoroughly analyze your finances, future needs, debts, dependents and other aspects of your life. Think about how the following situations might shape coverage needs:

1. Being a parent—If you’re a parent, life insurance can be an integral part of providing financial stability, even in your absence. A term life policy can be a logical choice here, as you can retain coverage until such time that your children are able to provide for themselves and would no longer require the death benefit to remain afloat.

2. Having outstanding debts—Whether you’re still paying off student loans, have a mortgage on your home or otherwise maintain debts, life insurance can help financially protect your family from potentially bearing such burdens in your absence. Term life insurance may once again be a logical choice here, allowing you to arrange coverage according to when you’re scheduled to pay off your balances.

3. Wanting to save for the future—Permanent policies can provide valuable financial opportunities in addition to lifelong coverage. Whole life insurance includes a cash value component that can accrue over time, potentially supplementing retirement savings and providing an increasing nest egg.

4. Requiring financial flexibility—In addition to including a cash value component, some permanent policies, namely universal life insurance, can also be adapted according to changing circumstances. If you find that your financial situation or coverage needs change, universal policies offer the ability to adjust your premiums and death benefits.

5. Lacking other options—In some cases, elderly people or those with existing health conditions may struggle to find an insurer willing to cover them. Fortunately, final expense insurance is a type of permanent coverage that can be more easily obtained. While death benefits are generally more limited, these policies do not typically require a medical exam, meaning those who may have been previously rejected can still find coverage.

How to Find the Right Policy

Suitable life insurance can provide valuable financial security and invaluable peace of mind. By accurately assessing your coverage needs, thoroughly exploring available policies and responsibly retaining appropriate insurance, you and your family can focus on enjoying every moment you have together without having to worry about the financial implications of losing one another.

At Marshfield Insurance Agency, we’re ready to partner with you and your loved ones to ensure you’re covered. Contact us today to discuss your situation and identify an ideal policy.

© 2025 Zywave, Inc. All rights reserved. This Know Your Insurance document is not intended to be exhaustive nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.