January is recognized as Financial Wellness Month, making it an ideal moment to evaluate your overall financial picture. One important area that deserves more attention than it often gets is life insurance. While many people associate life insurance with later stages of life, it can actually strengthen your financial wellbeing at every age.

Life insurance offers a safety net for the people you care about, prepares your household for unexpected events, and in some cases can even help you work toward personal financial goals while you are still living. Below, we’ll explore what life insurance does, the differences between available policy types, and how you can make sure your coverage continues to meet your needs.

What Life Insurance Really Provides

At a basic level, life insurance delivers a payout—known as a death benefit—to the beneficiaries you designate if you pass away. This money can help with significant expenses such as mortgage or rent payments, medical bills, credit card balances, child care costs, funeral arrangements, or everyday household needs.

Ultimately, life insurance supports the long-term stability of your family’s financial plan. It provides accessible funds when they are most needed and helps ease the strain of unexpected loss. By paying consistent premiums, you keep your policy active, and in exchange, the insurer guarantees a payout according to the policy’s terms. For this reason, life insurance is often viewed as a cornerstone of overall financial wellness.

Understanding Term vs. Permanent Life Insurance

Most life insurance options fall into two categories: term life insurance and permanent life insurance. Each type is built to meet different financial needs, and the best fit depends on your goals, budget, and stage of life.

Term life insurance covers you for a fixed period, commonly 10, 20, or 30 years. If you pass away within that window, your beneficiaries receive the death benefit. If you outlive the term, the policy ends. Term life is generally the most affordable option and is especially useful during high‑responsibility years, such as when raising children or paying down a mortgage.

Permanent life insurance lasts for your entire lifetime as long as premiums are paid. It includes an additional feature known as cash value—money that accumulates over time. You may borrow against it or withdraw funds during your lifetime, though doing so may reduce the eventual death benefit.

Two of the most common forms of permanent life insurance include:

• Whole life insurance: Offers predictable premiums, guaranteed cash value growth, and a guaranteed death benefit. Its stability makes it appealing for long‑term financial planning.
• Universal life insurance: Provides flexibility with premiums and death benefits. Cash value growth depends on market performance, which introduces more variability but also more control over the policy’s structure.

Both types of permanent coverage can be useful if you want lifelong protection or prefer having a savings component built into your policy.

Should You Consider a Cash Value Feature?

Cash value is often viewed as a helpful addition to permanent life insurance. Over time, it can be used to offset large expenses such as education costs, medical needs, or retirement income supplementation.

However, it’s important to understand how it works. Cash value usually grows slowly in the early years of a policy. Borrowing or withdrawing funds may also reduce the amount your beneficiaries eventually receive. Additionally, permanent life insurance tends to be more expensive than term insurance due to the added savings component.

If you already need lifelong coverage or appreciate the stability of set premiums, cash value can be a valuable perk. Still, most people should prioritize funding traditional savings or retirement accounts before relying on a life insurance policy for investment purposes.

Customizing Your Policy With Riders

Life insurance isn’t limited to a one‑size‑fits‑all approach. Riders—optional policy add‑ons—allow you to tailor your coverage to your specific needs and circumstances.

Some common riders include:

• Long‑term care rider: Helps cover expenses if you need ongoing assistance due to serious illness or injury.
• Terminal illness rider: Allows early access to part of your death benefit if you receive a terminal diagnosis.
• Return of premium rider: For term policies, this option may refund your premiums if you outlive the coverage period.

Many term policies also offer the ability to convert to permanent coverage later without completing another medical exam. This option can be extremely valuable if your health changes over time.

Riders increase flexibility and can help ensure your policy adapts to life’s changes.

How to Keep Your Coverage Current

Life insurance works best when it reflects your current financial reality. A quick annual review can go a long way toward keeping your coverage aligned with your needs.

Here are simple ways to keep your policy up to date:

• Review your beneficiary list annually. Update it after major life events such as marriage, divorce, or the birth of a child.
• Check your coverage amount. If your debt, income, or household size has changed, you may need a new level of protection.
• Evaluate conversion options. If you have term insurance, confirm whether you can convert it to permanent coverage without new medical tests.
• Schedule a yearly policy check‑in. Treat it like reviewing your budget or savings plan to ensure everything still fits your situation.

If you'd like assistance reviewing your current life insurance or exploring new options, reach out anytime. We're here to help you protect what matters most.