For many of us, life insurance falls into the “I’ll get around to it someday” category. While we know we should probably look into it, somehow “someday” keeps getting pushed to the back burner.
If this sounds familiar, you’re definitely not alone.
Life insurance can be a vital part of your broader financial plan and can help provide not only financial protection for the people who depend on you but also help support the goals you’ve worked hard to build. And, as your life changes, your coverage may need to change, too.
Big life events like getting married, having a child, buying a home, changing jobs, or preparing for retirement can all affect how much coverage you may need and whether your current life insurance policy still fits your financial goals.
September is Life Insurance Awareness Month, so it’s a great time to take a closer look at your coverage! Whether you’ve been meaning to explore life insurance options or have a policy you haven’t reviewed since you first purchased it, this guide can help you get started.
Let’s walk through why reviewing your coverage is important, how to estimate how much life insurance you may need, and the differences between some of the most common types of life insurance. This way, you can feel greater peace of mind for you and your loved ones.
Why Should You Review Your Life Insurance Coverage?
Life insurance is designed to help provide financial support for your loved ones after you die. The proceeds from a life insurance policy may help your spouse, partner, or family manage expenses if they have to adjust to life without your income. The death benefit may also help cover funeral costs and other financial expenses, which can add up quickly.
Once you purchase a life insurance policy, it can be tempting to check it off your list and forget about it. But we all know that life is constantly changing. The coverage that made sense when you were 25 years old and renting an apartment may look very different at 35, when you have a mortgage, two kids, and a growing income.
That’s why it’s a good idea to review your life insurance policy periodically, to ensure it still aligns with your current circumstances and long-term goals.
When Should You Review Your Life Insurance Policy?
Think of your life insurance policy like any other part of your financial plan. When life changes, it deserves a check-in.
Consider reviewing your coverage after a major life event, such as:
- Getting married or divorced
- Having a child or taking on a new dependent
- Becoming responsible for an aging parent or disabled family member
- Experiencing a significant change in income or employment
- Buying, selling, or paying off a home
- Taking on a substantial financial obligation like a personal loan
- Starting or owning a business
- Making significant changes to your retirement savings or long-term financial goals
Different life events often call for different updates.
For example, getting married may be a good time to review your beneficiaries, while having a child may mean taking another look at how much income your family would need to replace and for how long.
The bottom line? Your life insurance policy should evolve as your life does. By making sure it’s part of your regular financial check-up, you can help stay on top of changes and make sure your coverage continues to reflect what matters most to you and your loved ones.
How Much Life Insurance Do You Need?
This is one of the most common questions people ask when exploring life insurance. Unfortunately, there isn’t a one-size-fits-all answer.
The amount of coverage that may be appropriate for you depends on factors like your income, debt, mortgage, family situation, future goals, and other financial responsibilities.
A good place to start is to look at what your loved ones might need financially if your income were no longer there.
A Useful Starting Point: The DIME Method
The DIME Method is a simple framework that can help you estimate your potential life insurance needs.
DIME stands for:
- Debt — Add up your outstanding debts, excluding your mortgage. Think about credit cards, auto loans, and personal loans that could potentially become a financial burden for your family if you were no longer there to help manage them.
- Income — Consider how much annual income your family would need to replace. Some people use ten years of income as a starting point when estimating a potential financial gap, but the amount can vary depending on your situation.
- Mortgage — Think about how much money it would take to pay off your home. Life insurance proceeds can help your loved ones manage housing costs, and depending on the coverage, potentially remain in their home.
- Education — If you have children, think about the possible cost of their future education. Since education costs vary widely, an estimate or range can be a helpful starting point.
Is the DIME Method enough to determine how much life insurance you need?
While the DIME Method can be a helpful foundation, no formula can account for every part of your financial picture.
Your savings, retirement accounts, investments, existing insurance coverage, and other financial resources may also affect how much coverage you need.
That’s why it can be so helpful to talk with a qualified financial professional before deciding on a coverage amount. They can help you look at the bigger picture and determine what may make sense for your situation.
Understanding Your Life Insurance Options
If you’re shopping for life insurance for the first time (or revisiting what you currently have), you’ll find several types of policies available.
Two common types of life insurance are term life insurance and permanent life insurance, like whole life insurance.
So, what are the main differences between the two?
Term life insurance: coverage for a set period
Term life insurance provides coverage for a specific period, such as 10, 15, 20, or 30 years.
If the policyholder dies while the policy is active, beneficiaries generally receive the policy’s death benefit, subject to the policy’s terms and conditions.
Unlike permanent life insurance, term life insurance typically doesn’t build cash value. So, when the term ends, coverage generally ends unless the policy is renewed or otherwise continued according to the policy terms.
One potential advantage of term life insurance is that it is often more affordable than permanent life insurance, particularly for younger people in good health.
This can make it worth considering if your primary goal is to provide financial protection during the years your family may be most financially dependent on you, such as while you’re paying a mortgage, raising children, or building your savings.
Whole life insurance: intended to provide lifelong coverage
Whole life insurance is a type of permanent life insurance designed to provide coverage throughout your lifetime, subject to the policy’s terms and conditions.
Whole life insurance policies generally have fixed premiums and include a cash value component that can grow over time. Depending on the policy, you may also be able to borrow against or access that cash value during your lifetime.
The premiums are usually higher than term life insurance, but whole life insurance is designed to provide lifelong protection along with a cash value component.
Whole life insurance tends to be a good fit for people who want permanent coverage, are interested in estate planning, or those who value the stability and long-term nature of permanent life insurance.
AD&D: a smart supplemental coverage option
Accidental Death & Dismemberment Insurance (AD&D) is worth mentioning here, even though it’s not a standalone replacement for life insurance. Logix partners with Minnesota Life Insurance, offering AD&D coverage that may provide additional financial protection in the event of certain accidental injuries or death.
Can you have both Term and Whole Life Insurance?
Absolutely! Some people choose to have both.
For example, you might want to carry a term life insurance policy during your highest-earning years while also maintaining a smaller whole life insurance policy as a permanent foundation.
There’s no single combination that works for everyone. Instead, the best approach depends on your unique financial situation, budget, goals, and the type of protection you’re looking for.
Why Professional Guidance Can Help
Choosing a life insurance policy isn’t simply about picking a coverage amount.
Factors such as your age, health, the type and amount of insurance you purchase, and other policy expenses may all impact the cost and availability of coverage.
If you’re new to life insurance, a financial consultant can help you understand how different types of coverage work and identify options that may fit your needs best.
And, if you already have a policy, they can review your existing coverage and help clarify whether it still aligns with your financial situation and goals.
Sometimes, having someone knowledgeable walk through the details with you can make the process feel a lot more manageable.
Make Life Insurance Part of Your Financial Check-Up
Life insurance may not be something you think about every day, but it’s worth revisiting from time to time.
If you don’t currently have coverage, this can be a good opportunity to learn more about your options, and if you already have a policy, a quick review can help you determine whether your coverage still fits your life today.
This September, take a few minutes to assess your life insurance coverage, check your beneficiaries, and think about whether your current policy still supports the people and goals you want to protect.
Not sure where to start? Consider scheduling an appointment with one of our Financial Consultants today. They can provide personalized guidance to help you feel informed and comfortable every step of the way.
SCHEDULE AN APPOINTMENTDisclosures:
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.
Logix Federal Credit Union and Logix Insurance Services, CA Insurance License Number 0D64827. Insurance products: Are not NCUA/NCUSIF insured; Are not obligations of or guaranteed by Logix Federal Credit Union; May lose value. Neither Logix Federal Credit Union nor Logix Insurance Services is affiliated with Minnesota Life Insurance Company, Securian Financial Group, Inc., Franklin Madison Group LLC, or fmservice.com. Information on this website is intended as a general summary of the insurance benefits provided and is not an insurance contract or policy; be sure to read the terms and conditions of your specific insurance contract/policy for complete information on insurance benefits, coverage, conditions resulting in any reduction in coverage or benefit amount, and exclusions.
Check the background of your financial professional on FINRA’s BrokerCheck.
Fixed and Variable annuities are suitable for long-term investing, such as retirement investing. Gains from tax-deferred investments are taxable as ordinary income upon withdrawal. Guarantees are based on the claims paying ability of the issuing company. Withdrawals made prior to age 59 ½ are subject to a 10% IRS penalty tax and surrender charges may apply. Variable annuities are subject to market risk and may lose value.
The financial consultants of Logix Financial Services are registered representatives with, and Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker/dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Logix Federal Credit Union (LFCU) and Logix Financial Services are not registered as a broker/dealer or investment advisor. Registered representatives of LPL offer products and services using the name Logix Financial Services, and may also be employees of LFCU. These products and services are being offered through LPL or its affiliates, which are separate entities from and not affiliates of LFCU or Logix Financial Services. LPL Financial Services CA Insurance Lic. #0518721. Securities and insurance offered through LPL or its affiliates are:
| Not Insured by NCUA or Any Other Government Agency | Not Credit Union Guaranteed |
| Not Credit Union Deposits or Obligations | May Lose Value |
The LPL Financial registered representatives associated with this website may discuss and/or transact business only with residents of the states in which they are properly registered or licensed. No offers may be made or accepted from any resident of any other state.
Logix Federal Credit Union provides referrals to financial professionals of LPL Financial LLC (“LPL”) pursuant to an agreement that allows LPL to pay the Financial Institution for these referrals. This creates an incentive for the Financial Institution to make these referrals, resulting in a conflict of interest. The Financial Institution is not a current client of LPL for brokerage or advisory services. Please visit https://www.lpl.com/disclosures/is-lpl-relationship-disclosure.html for more detailed information.
CA Insurance License #0D64827 Logix Insurance Services
© 2026 Logix Financial Services
