Term insurance covers you for a set period of time( usually 10 or 20 years). The price rises as you age, so the younger you can purchase a plan the better. Whole insurance lasts a lifetime if you maintain payment on the premiums. These policies tend to cost much more but can be locked into fixed rates.
Finances
Life insurance basics
Life insurance can be critical to taking care of your family should something happen to you. Is your life insured? If so, do you know all the details of your life insurance policy? If not, are there certain factors keeping you from purchasing a policy?
There are two basic types of life insurance to consider. Term insurance covers you for a set period of time( usually 10 or 20 years). This is the more affordable type of insurance, especially while you’ re young. The price rises as you age, so the younger you can purchase a plan the better. Whole insurance lasts a lifetime if you maintain payment on the premiums. These policies tend to cost much more but can be locked into fixed rates.
BY THE NUMBERS
Northwestern Mutual conducted a nationwide survey in 2015 that uncovered some surprising data regarding how Americans think and feel about life insurance.
More than 5,000 U. S. adults aged 18 and older were surveyed, with the following results:
• Only 51 percent of Americans own life insurance.
• The primary reason more Americans don’ t own a life insurance policy is that it is generally misunderstood.
• 14 percent of U. S. adults say they don’ t own life insurance because they don’ t know much about it or never thought about it.
• Other barriers: too expensive( 43 percent) and low priority level( 31 percent) compared to other expenses.
• The majority of the population is aware of the death benefits permanent life insurance provides.
• Only 23 percent knew life insurance can be used to pay mortgages and debts, while only 15 percent of those surveyed knew it could be put toward estate taxes.
• 8 percent knew it can be used as a source of cash flow in retirement.
• Millennials are particularly likely not to have given thought to life insurance, with twice as many( 28 percent) saying they have never thought about it or don’ t know much about it, compared to the general population( 14 percent) who said the same.
Term insurance covers you for a set period of time( usually 10 or 20 years). The price rises as you age, so the younger you can purchase a plan the better. Whole insurance lasts a lifetime if you maintain payment on the premiums. These policies tend to cost much more but can be locked into fixed rates.
20 Madison Magazine September-October 2026