Life Insurance
If you passed away today, what would the financial consequences be for your family? Life insurance is one of the most affordable ways to make sure they’d be okay.
Why Do You Need Life Insurance?
Life insurance is about more than a payout — it’s about making sure the people who depend on you can keep going if you’re gone.
Protect Your Family
Life insurance provides financial support for your family’s final expenses and their ongoing living expenses — replacing the income your household depends on so they can continue life without financial hardship.
Protect Your Business
Life insurance can protect your business, partners, and employees — ensuring the business can continue to operate in the event of a co-owner’s death through buy-sell agreement funding and key person coverage.
Provide Financial Security
Life insurance can fund the payoff of excess debt, replace lost income for a defined period, cover mortgage obligations, fund college education, and support estate planning goals.
What Is Life Insurance Used For?
Life insurance is far more than just a question of how much to buy. Depending on your financial situation, it can serve a wide variety of purposes:
- Estate planning
- Funding buy-sell agreements between business partners
- Covering burial and final medical expenses
- Paying off mortgages and ongoing living expenses
- Funding college education for children
- Replacing lost household income
- Paying off outstanding debts
Life insurance is like auto insurance in that you can buy a lot of it or a little — paying a monthly or annual premium for a coverage amount that fits your situation.
How Much Do You Need?
A common benchmark: your death benefit should equal 6–8 times your annual earnings. But your actual number depends on:
- Other income sources available to your family
- Size of your family and number of dependents
- Your spouse’s earning capacity
- How long dependents rely on your income
- Social Security and employer life insurance benefits
- Outstanding mortgage, debts, and future obligations
The Two Basic Types of Life Insurance
Every life insurance policy falls into one of two broad categories. Understanding the difference is the first step toward choosing what’s right for you.
Term Life Insurance
Coverage for a specific period of time — typically 1, 5, 10, or 20 years. If you die during the term, your beneficiaries receive the death benefit. If the term ends and you’re still living, the policy expires (though most are renewable).
Best for: Young, healthy people who need large coverage at an affordable premium. Often the right starting point for families with dependents and a mortgage.
💡 Tip: If your health changes during the term, premiums upon renewal can increase significantly. Ask your agent about convertibility options before purchasing.
Cash-Value (Permanent) Life Insurance
Permanent coverage that never expires as long as premiums are paid. A portion of each premium is invested and builds a cash value you can borrow against or withdraw from during your lifetime.
Best for: Those with significant assets who want lifelong coverage, estate planning benefits, or a policy that builds accessible value over time.
💡 Note: Variable life policies can see death benefit fluctuations based on investment performance, though most have a guaranteed minimum floor.
Choose a Financially Strong Carrier
There are more than 2,000 companies selling life insurance in the United States. Some are financially solid; others are not. This matters enormously — because you may not collect on a life insurance policy for decades, and the insurer needs to be around when the time comes.
Independent rating agencies grade insurers the way schools grade students — A+, A, A-, B+, and so on. As a rule of thumb, stick with carriers rated A or better by the major rating organizations.
As an independent agency, Bancorp Insurance works with multiple carriers and will only recommend financially sound companies. We analyze your situation and match you with the insurer best suited to serve your needs for the long haul.
What to Look for in a Life Insurer
- Financial strength rating of A or better
- Low actual expenses and mortality costs
- Strong track record of paying claims
- Competitive premiums for your age and health profile
- Flexible policy options and conversion rights
- Clear and transparent policy terms
With thousands of policy options across hundreds of insurers, working with a trained professional to analyze your situation isn’t just helpful — it’s essential.
Term vs. Cash-Value: At a Glance
Frequently Asked Questions
What Our Clients Say
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From the Bancorp Blog
Let’s Find the Right Life Insurance for You
With thousands of policy options across hundreds of carriers, the right guidance makes all the difference. Book a no-obligation appointment and let a Bancorp agent analyze your needs and recommend the right coverage.
