Q&A with John Wiscaver

Q: This Valentine’s Day, 40 percent of women wish their spouse or partner had life insurance, according to a survey by the Life Insurance and Market Research Association. Who really needs life insurance?

A: Many people may think they don’t need life insurance, because they’re young, healthy and/or nothing bad will ever happen to them. Even if you live what you consider a “safe” life, accidents do happen, and it’s better to be prepared than to not have coverage when you and your family need it most. Think about debt that your spouse might be responsible for in the event of your death, including mortgage payments, auto payments and medical bills. If your job or lifestyle puts you at a greater risk of injury or death, you should consider getting a more extensive life insurance policy. If you have children, you should consider opting for life insurance that covers all members of the family. Financial expenses that result from death or injury can put unnecessary stress on an already emotionally distraught family. In addition, insuring children will guarantee their ability to have life insurance as adults, regardless of any health conditions that may develop down the road.

Q: What options are there?A: There are two main types of life insurance policies: term and permanent. Term policies are set for a finite period of time. If you pass in the time period set up by your policy, the insurance company pays the death benefit to your designated beneficiaries. Permanent policies, including whole-life and universal life insurance, are designed to last until your eventual passing and can be significantly more expensive than term policies. Also, you should update policies based on your current and future needs. If you have recently gotten married or started a family, it may be time to update your policy to ensure all of your loved ones are covered.

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