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Life Insurance

Do You Need It?

No—if you’re on your own and live in an apartment. Yes—if you are anything other than that. At the very least, you’ll want a small policy that will help your family pay for funeral expenses should the need arise.


If you’re a single homeowner or have other debt, life insurance could help pay off those debts. Let’s say you leave a nice little house that your parents will then have to sell. If it takes any amount of time to sell it, they’ll be stuck with the mortgage payments. A policy would help them out.


If you’re married with no children, a policy is still a good idea. Especially if your spouse doesn’t work or doesn’t make much money. If you weren’t here, would they be able to cover monthly expenses on their own? If not, a life insurance policy would help fill any gaps in income.


This one’s a no-brainer. If you have children, you must have life insurance. Period. Unless you’re rolling in the dough, make sure you have a decent policy that will give your children enough money to live on until they can take care of themselves.

How Much

There’s no easy answer for this one. Some experts suggest anywhere from six to ten times your annual salary. Your best bet is to not figure a number based on your salary at all. Sit down with your budget and simply figure out how much your family will need to live.

What Kind

So, you’ve figured out you need life insurance and how much you need. There’s one decision left: what kind? There are four main types of life insurance:

If you’d rather be directly in charge of your own investments, then a term policy would be the best choice. You can always stop by your credit union and speak to an investment specialist to learn about the various other ways you can invest your money. Visit our Save section to discover the different ways you can save and invest.