September is Life Insurance Awareness Month, and at Tobias Financial Advisors, one of our goals is to educate our clients about the importance of life insurance and the role it can play in protecting their family’s financial security.

Life insurance may be needed depending on your specific financial situation, whether it’s income replacement, debt repayment, or estate tax liquidity. Below we plan to discuss some basic life insurance questions with the hope that you will contact us if you have any concerns about the specifics of your financial plan.

When and why you might need it

  • Life insurance may be necessary if there are not enough assets to support the lifestyle of dependents
    • Consider life events
      • Marriage
      • Birth of a child
      • Divorce
      • Buying a house
    • Special situations
      • A child with special needs
      • Business owners with sales agreements
      • Taxable High Net Worth Individuals

The main types of life insurance


  • Coverage only during the specified time period. Usually 10, 20 or 30 years.
  • Lower cost and more affordable. As a rule, 5-10% of the cost of the whole life.
  • No cash payout if you outlive the policy.
  • Can be converted for life.
  • Often available through employer benefits packages.

All life:

  • The policy does not expire, but it can expire.
  • Cash value grows on a tax-deferred basis.
  • Often can borrow under the policy.
  • Much more expensive than the term (10-20 times).
  • May include delivery fees.
  • Examples: whole life, universal life, variable life, indexed universal life, variable universal life, guaranteed universal life.

Life Insurance: Want to learn more?

There are many reasons why customers buy life insurance, be it for family, business or inheritance protection. Each of these reasons is unique to their financial plan and should be carefully considered before purchasing. To learn more, we encourage you to view our Wealth Advisor, Yasenia Realejoexplore this topic in more detail here.

As always, our advisors are ready to help you with this careful consideration and guide you through the financial planning process.

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