Life Insurance 101: What You Need to Protect Your Family

Life insurance pays a death benefit to your named beneficiary when you die. The main goal is to protect people who depend on you financially—mortgage, children’s education, daily expenses, and debt—when you can no longer provide support.

Who needs it? Anyone with financial dependents (spouse, children, parents) usually benefits most. Single people with no dependents often need less, but buying while young and healthy can still make sense if you expect a mortgage or family later.

Term Life（定期寿险）在固定期限内提供纯死亡保障（Death Benefit），无现金价值，期满保障终止。是大多数家庭的首选产品类型。

Whole Life（终身寿险）提供终身保障，保费通常固定，保单内积累 Cash Value（现金价值）。属于 Permanent Life 类别中最传统的产品形态。

Universal Life (UL) 是 flexible premium permanent life insurance：policyowner 可在一定范围内调整 premium 和 death benefit。

Variable Life (VUL) 和 Indexed Universal Life (IUL) 是 permanent life 中带 investment/market-linked 组件的产品。

DIME helps you estimate how much death benefit you may need:

• D — Debt: Credit cards, auto loans, personal loans you want paid off
• I — Income: Annual income × years of replacement (often 5–10)
• M — Mortgage: Remaining mortgage balance
• E — Education: Estimated future education costs for children

Add the four for a rough total. Example: $20k debt + $300k income replacement ($60k × 5) + $250k mortgage + $100k education ≈ $670k.

Key pricing factors:

• Age: Younger applicants usually pay less; each year older often means higher cost
• Health: BMI, blood pressure, cholesterol, and medical history affect underwriting
• Smoking: Smokers often pay 2–3× nonsmoker rates; after quitting (often 1–2 years), you may qualify for nonsmoker rates
• Occupation and hobbies: High-risk jobs or sports may mean surcharges or declination

Medical exam vs no-exam: Traditional policies often require an exam (blood, urine, vitals), which can mean better rates for healthy applicants. No-exam or simplified-issue policies use questionnaires and are faster but often cost more and may cap coverage.

购买寿险的典型流程包括需求评估、比价、申请、体检（如需要）、核保、审批与保单交付。完整步骤见下方 process_steps。

寿险保单除 death benefit 外，还包含 Contestability Period、Suicide Clause、Grace Period 等关键条款，以及可选 Riders。

Beneficiaries are the people or entities who receive the death benefit. They can be a spouse, children, parents, a trust, or a charity.

How to name them: List a primary beneficiary and a contingent (backup) if the primary cannot collect. Use full legal names, relationship, and percentages (e.g. 50% spouse, 50% children).

Common mistakes: (1) Leaving the beneficiary blank or naming “estate,” which can force probate; (2) Failing to update after divorce—an ex-spouse may still be named; (3) Naming minor children directly—payouts may require a court-appointed guardian; (4) No contingent beneficiary—if the primary dies with you, proceeds may go to the estate.

Term Life 期限选择应匹配财务责任的时间 horizon。常见策略包括单一 long term、Laddering（阶梯式组合）及 Conversion（转换）规划。