Life Insurance
Life insurance is a contract between a policyholder and an insurer. The policyholder pays regular premiums and in return the insurance company promises to pay a sum of money, or death benefit, to one or more named beneficiaries if you pass away while the policy is in force.
How do we calculate an insurable need?
Easily! With the DIME method. It's not the right fit for every situation, but it's a great starting point.
D
Debt
Start with what you owe. Think mortgage, auto loans, credit cards, student debt. If you passed away tomorrow, would your family be left holding the bag? This number is the base of your coverage calulation.
I
Income
How many years would your family need to fully replace your paycheck? Our typical rule of thumb is 10x your annual income, but the real answer depends on your family's lifestyle, your age, and how long your dependents need support.
M
Mortgage
Wait, didn't we cover debt? Sort of! Mortgages are usually the biggest liability, so they deserve their own spotlight. Plus, for most families, keeping the house isn't just a financial decision, it's a decision about stability.
E
Education
If you have children, we want to factor in what it would cost to get them through school. Tuition, room and board, books...it all adds up fast, and it's not getting any cheaper. Life insurance is one of the simplest ways to make sure college affordability doesn't disappear with you.
Term Insurance
(Temporary)
Term life insurance provides coverage for a specified "term" (commonly 10, 20 or 30 years). If the insured person passes away during that term while the policy is in force, a death benefit is paid out to their beneficiaries. Because it doesn't accumulate cash value and its premiums are typically lower than permanent policies, term life is often chosen to protect against financial risks tied to a specific time frame, such as covering a mortgage, replacing income during working years, or ensuring children’s education is secured if something happens.
Permanent Insurance
Permanent life insurance provides a lifetime of coverage—so long as premiums are paid, the death benefit will be paid out no matter when the insured passes away. Because of this, it’s often chosen by individuals who want long-term protection, plan to leave a legacy, secure coverage well into retirement, or ensure that final expenses or estate obligations are handled. Common types are Whole Life, Variable Life, Universal Life, and Indexed Universal Life.
Indexed Universal Life
(Permanent)
Indexed universal life insurance combines lifetime protection with a cash-value component whose growth is tied to the performance of a market index (such as the S&P 500), though the money is never directly invested in the market. The policy features a “floor” (often 0%) so that in years when the index loses value, the cash value doesn’t drop, and a “cap” or participation rate that limits how much of the index gain is credited to the cash value. Because of this structure, it appeals to individuals looking for permanent life coverage with the potential for upside growth and downside protection, such as those planning for leaving a legacy, estate issues, or tax-efficient accumulation while still having the permanent death benefit safeguard.
Riders
Life insurance riders are like optional “add-on" features you can add to a standard policy, and they help your coverage reflect your unique needs. For instance, you might choose a waiver of premium rider that stops your premiums if you become disabled and unable to work, or a guaranteed insurability rider that lets you increase your death benefit later (for example after marriage or having a child) without a new medical exam. Another popular example is a long-term care rider, which allows you to tap part of the benefit while you’re alive if you need extended care like assisted-living or in-home help.
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These riders often have a fee, but they're typically modest, especially compared to buying an entirely separate policy. The key is to think of the cost as a small premium for extra flexibility and peace of mind: you’re not buying something you might not use, you’re giving yourself options for when life changes.