Financial Wellness Month arrives every January, making it an ideal moment to step back and review your overall financial strategy. One area that often gets pushed aside is life insurance. Many people think of it only as something you consider later in life, but it can actually support your financial well‑being at every stage.

Life insurance helps protect the people you care about, provides a financial safety net during life’s biggest uncertainties, and in some cases, can even contribute to your personal financial goals. Below, we’ll take a closer look at how it works, the main types of policies available, and how to make sure your current coverage still supports your needs.

What Life Insurance Really Provides

Life insurance is designed to pay out a sum of money—called a death benefit—to the beneficiaries you choose when you pass away. Your loved ones can use these funds to help cover ongoing bills like the mortgage or rent, address outstanding debts, pay for funeral arrangements, or simply handle everyday expenses.

Ultimately, life insurance helps stabilize your family’s finances during a difficult period. It provides accessible cash at a time when it’s needed most, helping preserve your family’s financial plan even if the unexpected happens.

You keep your policy active by paying regular premiums. In return, the insurance company promises to provide the specified payout if you pass away during the period of coverage. For many families, that assurance is a central piece of long‑term financial health and peace of mind.

Term vs. Permanent Life Insurance

There are two primary categories of life insurance—term and permanent. Both can be valuable, but which one is right for you depends on your financial goals, your budget, and where you are in life.

Term life insurance covers you for a specific number of years—commonly 10, 20, or 30. If you pass away within that timeframe, your beneficiaries receive the death benefit. If the term ends and you outlive the policy, the coverage expires. Term insurance tends to be more affordable and is often ideal for the years when your financial responsibilities are at their highest, such as raising children or paying down a mortgage.

Permanent life insurance lasts for your entire lifetime as long as premiums are paid. It also includes a component called cash value that accumulates gradually over time. This savings‑like feature allows you to borrow or withdraw funds during your life, though doing so may reduce the eventual death benefit.

Two of the most common forms of permanent insurance include:

Whole life insurance. This option offers consistent premiums, steady cash value growth, and a guaranteed death benefit. It is the most predictable form of permanent life insurance.

Universal life insurance. A more flexible choice, this type allows you to adjust your premiums and death benefit over time. The cash value depends on market performance, which means it carries more variability but can also offer more customization.

Both whole and universal life can play valuable roles in long‑term planning, especially for those who want lifelong coverage or are interested in building savings within their policy.

Thinking About Cash Value: Is It a Good Fit?

The cash value feature in permanent life insurance is often viewed as an additional financial tool. Over the years, it may be used to help pay for college expenses, medical bills, or even a portion of your retirement needs.

However, cash value builds slowly in the early years of a policy. Loans or withdrawals can reduce the amount your loved ones ultimately receive, and permanent insurance typically costs more than term coverage. Because of this, many people choose to focus on funding traditional retirement and savings accounts first, and then consider cash value as a supplemental benefit.

If you need coverage that lasts a lifetime or like the idea of stable premiums, the cash value component can be a helpful bonus. Just make sure you view it as part of a broader, balanced financial plan.

Riders That Expand or Customize Your Coverage

Life insurance doesn’t have to be one‑size‑fits‑all. Riders—optional add‑ons—allow you to tailor your policy to match your personal needs and future plans.

For instance, a long‑term care rider can offer support if you face a serious illness or injury and need ongoing assistance. A terminal illness rider gives you access to part of your death benefit while you’re still alive if you receive a qualifying diagnosis. Some term policies also offer a return‑of‑premium rider, which refunds the premiums you’ve paid if you outlive the term.

Another valuable rider found in many term policies is the conversion option. This allows you to switch from term insurance to permanent coverage later—usually without having to take a new medical exam. This can be especially beneficial if your health changes over time.

These customizations can make your policy more adaptable and better aligned with your long‑term goals.

Simple Ways to Keep Your Policy Current

Reviewing your life insurance regularly is an important part of maintaining financial wellness. A few quick habits can help ensure your policy still fits your needs:

• Update your beneficiaries annually. Confirm that the right people are listed, especially after major milestones such as marriage, divorce, or welcoming a new child.

• Check your coverage amount. Changes in income, debt, or family size may mean your current policy no longer provides enough protection.

• Review term policy options. If you hold a term policy, look into whether it includes a conversion feature. This can offer valuable flexibility if your circumstances shift.

• Schedule a yearly review. Just like revisiting your budget or savings plan, a yearly policy check can help you stay aligned with your financial goals.

If you’d like help evaluating your current life insurance or want to explore new options, reach out anytime. We’re here to support you in protecting the people and priorities that matter most.