Everything you need to know about insurance basics, like coverage types, limits, cost and more.
Life Insurance Quotes, Policies & Plans
You do everything you can to protect your loved ones, and that includes their financial future. Life insurance is a smart, proactive way to financially protect the dreams of those you care about after you pass away. Whether you’re looking for temporary coverage or coverage that lasts a lifetime, American Family Life Insurance Company has customized options to financially protect the ones who matter most.
You might be surprised at how easy and affordable life insurance might be. We’ll help you through the process — go ahead and take a look around at our resources to learn all about life insurance at your own pace. The more you know, the better you can safeguard your loved ones’ financial future.
Who Needs Life Insurance?
Ideally, everyone should have a life insurance policy that amounts to enough coverage to preserve their loved ones’ financial stability. But depending on your stage of life and individual needs, the type of life insurance that’s right for you could be different than what’s right for someone else. Here are a few examples of people who may need life insurance:
If you pass away suddenly, your loved ones will be out a source of income that they may need to pay bills, handle expenses and save money for the future. Having life insurance for income replacement means your family could have the financial support they need to maintain the lifestyle they’re accustomed to.
Homeowners with a mortgage
If you’re still paying off a mortgage when you pass away, you could be leaving behind a large debt for your partner. A life insurance policy can help contribute to mortgage payments after you’re gone.
Parents with young children
Raising a child is expensive, and if you pass away, your children will need financial stability to thrive. It may also be a good idea for both parents have their own life insurance policies so the other can be provided for should one of you pass away.
Why Do You Need Life Insurance?
No matter what stage you’re at in life, life insurance may benefit you. Whether you’re young and single with no dependents or an empty nester reaching retirement age, life insurance is an essential element of financially protecting the future of those you love.
Not sure if you need life insurance? Here are some of the reasons the answer may be yes.
Because people count on you. You may not know what the future will bring, but if you were to pass away, help make sure your loved ones are financially protected.
For living expenses and to pay off debts. In the event of your death, proceeds from a life insurance policy can be used to help cover things like: mortgage or rent payments, child care, outstanding credit card or loan debt, maintaining a current lifestyle, or providing care for an elderly or disabled relative.
To plan for the future. An education fund, a secure retirement — the loss of your income due to death could adversely impact your family’s ability to plan for the future.
To cover final expense costs. Proceeds from a life insurance policy can be used to help cover funeral expenses and memorial services.
Business continuation. If you own a business, life insurance may help ensure that this dream you’ve worked so hard for continues after your death.
A lasting or charitable gift. Life insurance may be a way to support the organizations or causes that are important to you even after you are gone.
Life Insurance 101 FAQs
You can start the life insurance application process by requesting a quote, either online or with your agent. Then, after connecting with an agent, you’ll choose the amount of coverage and type of policy you want. You'll also fill out an application that includes some basic information about you, including info about your health and beneficiaries. You may have a telephone interview or be asked to complete an in-person medical exam, where you can choose a place that’s convenient for you, like your home, work or at a lab facility. Learn more about the life insurance buying process.
Life insurance helps financially provide for your family and can help ensure they have the resources to meet their financial needs if you were to pass away. It can help replace an income, pay for final expenses, cover medical bills, go towards a mortgage or pay for other expenses that your family might be responsible for. The bottom line? Life insurance is a financial safety net for your loved ones.
We make it easy to pay for your policies by giving you a variety of payment options. You can mail in a payment, set up automatic payments, use the automated pay-by-phone option or use Pay Now on AmFam.com.
Learn more about paying for life insurance.
A beneficiary can be a person or entity, such as a charitable organization, that receives the proceeds of a life insurance policy when the insured person passes away. You may have multiple beneficiaries on a life insurance policy. After all, you’re not really buying life insurance for you, you’re buying life insurance to financially protect the people you love. Find out more about beneficiaries
In general, the life insurance payout from a death benefit is not subject to federal or state taxes.1 There are situations where proceeds may be taxable, but your tax advisor can help you better understand these instances.
Buying your child life insurance when they’re young and healthy has many benefits. As we’ve mentioned, the cost of life insurance largely depends on age and health, so buying a child life insurance means you can get a policy on them that’ll lock in that low rate for the life of the policy (as long as premiums are paid) and ensure that they have life-long life insurance coverage. You can get them a low coverage limit that may simply cover the cost of final expenses, and they may be able to add coverage as they get older.
Buying a permanent life insurance policy on a child, such as DreamSecure Children’s Whole Life, is also a simple way to provide some financial protection. A permanent life policy gains cash value, which can be borrowed against2 later in life to help with things like a down payment on a home or college tuition.
Find out more about the benefits of life insurance for children.
Life Insurance Policy Comparison Chart
Take a look at our life insurance comparison chart to better understand your options and select the right coverage for you to protect what matters most.
Get a Life Insurance Quote
There’s no time like the present. Act today to help protect their tomorrows — read more about why it’s time to buy life insurance today.
Need more info? An American Family Insurance agent is happy to answer any of your questions.
* According to company underwriting guidelines.
† Children ages 0-17 won't need a medical exam — they'll simply answer some health questions to determine eligibility.
1 Neither American Family Life Insurance Company nor its agents are authorized to give tax or legal advice, and this should not be construed as such advice.
2 Any loans taken from your life insurance policy will accrue interest. Any outstanding loan balance (loan plus interest) will be deducted from the death benefit at the time of claim or from the cash value at the time of surrender. If the loan balance grows too large for the cash value to support it, the policy could terminate.
3 Approval is subject to health history and underwriting guidelines.
4 The GPO may be exercised only at specified dates and life events and is subject to benefit amount limitations.
5 In order to apply for a DreamSecure EasyProtect Term Life Insurance policy, a customer must have purchased an eligible underlying policy underwritten by American Family Mutual Insurance Company, S.I., American Family Insurance Company, American Standard Insurance Company of Wisconsin, or American Standard Insurance Company of Ohio within the last 30 days. Existing customers with an eligible policy must apply within 30 days prior to their birthday. Contact an agent for information about eligible policies.
**Discounts may vary by state and company underwriting the auto policy. Discounts may not apply to all coverages on an auto policy. Discounts do not apply to the life policy.
Policy Forms: ICC18-33 (10), ICC18-33 (15), ICC18-34 (20), ICC18-35 (30), L-33 (10)(ND), L-33 (15)(ND), L-34 (20)(ND), L-35 (30)(ND), L-33 (10)(SD), L-33 (15)(SD), L-34 (20)(SD), L-35 (30)(SD), ICC18-36 (10), ICC18-36 (15), ICC18-36 (20), ICC18-36 (30), L-36 (10)(ND), L-36 (15)(ND), L-36 (20)(ND), L-36 (30)(ND), L-36 (10)(SD), L-36 (15)(SD), L-36 (20)(SD), L-36 (30)(SD), ICC22 L152 MS 06 22, L152 ND 06 22, L152 SD 06 22, ICC17-225 WL, L-225 (ND) WL, L-225 WL, ICC17-227 WL, L-227 (ND) WL, L-227 WL, ICC17-223 WL, L-223 (ND) WL, L-223 WL, ICC17-224 WL, L-224 (ND) WL, L-224 WL, ICC17-228 WL, L-228 (ND) WL, L-228 WL, ICC21 L141 MS 01 22, L141 ND 02 22, L141 SD 02 22