January marks Financial Wellness Month, making it an ideal moment to reflect on your financial plan and the protections you have in place. One area that many people overlook is life insurance. While it’s often seen as something only older adults need, life insurance can support your financial stability at every stage of life.

Life insurance can help safeguard the people you care about, cushion your family against life’s uncertainties, and in some cases, even contribute to your long-term financial goals while you’re still here. Below, we’ll explore what life insurance actually does, the different types of coverage available, and how to make sure your policy still fits your needs.

What Life Insurance Really Provides

At its simplest, life insurance offers a financial payout—known as a death benefit—to the people you choose as beneficiaries. They can use that money to handle significant expenses such as mortgage or rent payments, funeral costs, childcare, outstanding debt, or everyday living needs.

In other words, life insurance helps keep your family’s financial path steady if something unexpected happens. It creates liquidity—cash available at the most critical moment—and turns a potentially overwhelming situation into one that’s more manageable.

You pay premiums to keep the policy active. In return, the insurance company guarantees a payout under the contract’s terms. That sense of financial confidence is one of the main reasons life insurance is often viewed as a core piece of a well-rounded financial plan.

Term vs. Permanent Life Insurance

Most policies fall into one of two categories: term insurance or permanent insurance. They serve different purposes, and the right choice often depends on your goals, budget, and future plans.

Term life insurance protects you for a fixed period—commonly 10, 20, or 30 years. If you pass away within that timeframe, your beneficiaries receive the death benefit. If the term ends and you're still living, the policy expires. Term life is typically the most affordable option, making it a strong fit for people who want coverage during higher‑responsibility phases, such as raising children or paying off significant debt.

Permanent life insurance stays in force for your entire life, as long as premiums are paid. It also includes a cash value component that grows over time. This built-in savings element can be borrowed against or withdrawn while you’re living, though doing so may reduce the final death benefit.

Two of the most common types of permanent policies include:

• Whole life insurance: Offers predictable premiums, guaranteed cash value growth, and a fixed death benefit. It’s designed for long-term stability.
• Universal life insurance: Provides greater flexibility. You can adjust premiums and your death benefit, and the cash value is tied to market performance. This means more control but also more potential risk.

Both types can be helpful if you want lifelong coverage or if you’re interested in a policy that includes a savings component.

Is Cash Value a Good Fit?

The cash value in permanent life insurance is often seen as an added perk. Over time, these funds may support major expenses, such as education costs, medical bills, or supplemental retirement income.

However, it’s important to understand how this feature works. Cash value typically grows slowly in the early years. Withdrawals or loans can reduce the amount your beneficiaries ultimately receive. Additionally, permanent policies cost more than term insurance.

If you’re already looking for lifelong coverage or prefer the predictability of fixed premiums, cash value can be a helpful feature. But for many people, it’s best to prioritize other savings tools before relying on a life insurance policy for investing.

Customize Your Coverage with Riders

Life insurance isn’t a one-size-fits-all product. Riders—optional features added to a policy—can help tailor your coverage to your needs.

Common riders include:

• Long-term care rider: Helps pay for care if you become seriously ill or injured and need extended assistance.
• Terminal illness rider: Lets you access part of your death benefit if you’re diagnosed with a terminal condition.
• Return of premium rider: Available on some term policies, this rider may refund the premiums you’ve paid if you outlive the policy.

Some term policies also allow you to convert your coverage into a permanent policy without a new medical exam. This can be beneficial if your health changes or your long-term plans shift.

These add-ons can give your policy more flexibility and help ensure it grows with you over time.

How to Keep Your Policy Up to Date

Maintaining your life insurance is part of staying financially well. A few simple habits can help you stay on track:

• Review your beneficiaries annually: Make sure your selections reflect any major life changes, like marriage, divorce, or the birth of a child.
• Reevaluate your coverage amount: As your income, expenses, or family size changes, your policy may need adjusting.
• Check for conversion options: If you have a term policy, see whether it allows conversion to permanent coverage without medical underwriting.
• Schedule a yearly policy review: Just like budgeting or revisiting your savings plan, reviewing your policy helps ensure your coverage continues to align with your goals.

If you'd like help reviewing your existing coverage or exploring new options, reach out anytime. We’re here to help you protect the people and priorities that matter most.