How Much Life Insurance is Needed?

"Life Insurance Needs," means the amount of life insurance death benefits (pure life insurance protection) that is needs upon a person's death. There are a range of life insurance products to choose from, such as term life insurance, whole life insurance, variable life insurance, universal life insurance, and variable universal life insurance. Choosing amongst different products is not the main concern here. The main concern is the amount of life insurance death benefits you needs, regardless of the type of product you choose.

Is it the rule of thumb that you need life insurance coverage equaling 4 to 6 times your income?
Yes. However, needs vary based on family status, savings and lifestyle. You should review your coverage on those terms.

What about buying life insurance for a spouse or children?
Generally, that should not be done in lieu of buying appropriate amounts of life insurance on the family breadwinner's. It is extremely important that you protect the earning capacity of the primary breadwinner, if possible, with the right amount of life insurance before considering life insurance on children or spouse. In a dual-income household, it is important to protect the earning capacity of both spouses. Life insurance for a non-wage earning spouse is often recommended for help in paying for household services lost if that spouse dies.

Should I buy term insurance or cash value life insurance?
Term life insurance pays out in the event of death. Cash value, which is more costly, has a cash amount you can withdraw before death. Which one is for you will depend on your circumstances. First answer an insurance question - how much life insurance should you buy? Then look at the financial aspect - what type of policy should you buy? The amount of life insurance you need may be so large that the only way you can afford it is by buying term insurance, which carries a lower premium than cash value policies. If your ability (and willingness) to pay life insurance premiums is such that you can afford the desired amount of life insurance under either type of policy, you can consider the financial decision - which type of policy to buy. If you view life insurance as an investment, you'll want to study rates of returns. If it's protection, then your purchase is a matter of what you can afford and want to spend.

Does term insurance provide protection for temporary needs?
Yes. Term insurance is ordinarily purchased to provide temporary coverage for a known period of time. Term insurance generally provides a lower initial cost.

What do I need in order to file a death claim?
In order to file a death claim on a Prudential policy, you will need the following information:
Policy number and, if available, the policy itself or Certificate of Insurance
Date of insured's death
Certified copy of the insured's death certificate
Date of insured's birth
Insured's mailing address
Beneficiary's name
Beneficiary's relationship to the insured
Beneficiary's date of birth
If the beneficiary is also deceased, you will need:
Certified copy of the beneficiary's death certificate

What are my different options for paying premiums?
Depending on which Prudential product you own, you may be able to pay your premiums on a monthly, quarterly, semi-annual or annual basis. You may also be able to have your premiums deducted directly from your paycheck.


If I decide to take out life cover will I need to go for a medical?
Once your application has been submitted to the insurer it will be assessed by a medical underwriter. The life insurance provider will either accept your application immediately, or they could request a medical report from your General Practitioner. You may also be asked to attend a medical examination, which will be paid for by the insurer.