Life Insurance
Definition
Insurance paying a death benefit to your beneficiaries if you die. Term life (20-30 years, cheap) versus whole life (lifetime, expensive, includes cash value). Most people need term. If you're dependent-free, you might not need any.
Why It Matters
If people depend on your income, life insurance is critical and cheap. Term life for $1M costs $30-50 per month for healthy 30-year-old. If you die, family doesn't lose the house. If you're single with no dependents, skip it.
Example
Have two kids and a $500k mortgage. Get $1M term life policy at $40 per month. If you die, family gets $1M tax-free, pays off mortgage, and has money to live on. If you live to 60, insurance was cheap and you protected your family.
Related Tools
Related Terms
Pulsafi definitions are sourced from primary regulatory and industry references. See our methodology and data sources.