Life insurance is a simple answer to a difficult question:
How will my loved ones manage financially if I were to pass away?
If anyone depends on your income or the unpaid work you do, they would most likely struggle if you were gone.
What are the different types of life insurance?
Life insurance generally falls into two categories:
Term life insurance provides protection for a specific period of time. This makes sense when you need protection until your kids graduate from school or your mortgage is paid off, for example. It typically offers the most amount of coverage for the lowest initial premium and is a good choice for those on a tighter budget.
Permanent life insurance provides lifelong protection, as long as you pay the premiums. It may also have “living benefits,” like the ability to accumulate cash value on a tax-deferred basis, which you can tap for any reason from buying a home, to covering an emergency expense, and more. Because of these benefits, initial premiums are typically higher than a term certificate with the same amount of coverage.
How much does it cost?
Most people overestimate the cost by seven to 10 times.* So, the good news is that it is likely more affordable than you think. A certificate’s cost depends on factors such as your age, your health, the type of certificate, and how much coverage you buy. In general, you’ll typically pay less the younger and healthier you are.
How much do I need?
That will depend on who you want to protect financially and for how long. An easy way to get a working idea of how much life insurance you need is to use an online life insurance needs calculator, like the one on the Royal Neighbors website at royalneighbors.org/insurance.
How do I get it?
A great way is to work with a financial professional who can help you find a certificate, or certificates, with the right coverage for your budget.
Royal Neighbors stands by to support and educate our members. Tell us how we can help at royalneighbors.org/contact-us.
* 2025 Insurance Barometer Study, Life Happens and LIMRA
This piece has been reproduced with the permission of Life Happens, a nonprofit organization dedicated to helping consumers make smart insurance decisions to safeguard their families’ financial futures. Life Happens does not endorse any insurance company, product, or advisor. © Life Happens 2025. All rights reserved.
This article is for informational purposes only, you should not construe any information provided as legal, tax, investment, or financial advice. No reader should make any investment decision without first consulting their own financial advisor and conducting their own research and due diligence.