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The Fundamentals of Life Insurance

  • Oppenheimer & Co. Inc.
  • September 9, 2020

What is Life Insurance?

A life insurance policy is a contract with an insurance company. In exchange for premium payments, the insurance company provides a lump-sum payment, known as a death benefit, to beneficiaries upon the insured’s death. Life insurance brings peace of mind knowing there will be financial support for your loved ones. It can provide protection for family members in the event of a death by replacing income, covering educational costs and much more.

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Who Should Have Life Insurance and Why?

Who should have life insurance and why?
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Married or Getting Married
Having life insurance in place ensures your spouse can maintain the lifestyle that they are accustomed to. Many families rely on two incomes, and life insurance can replace the income lost to cover future living expenses.

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Starting a Family
Life insurance can help safeguard your financial future should a spouse be left alone to provide for your children. It will offer the income needed to cover services such as child care, and education.

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Changing Jobs
If you have changed jobs or have been recently promoted, that would be a good time to reevaluate your life insurance policy. Many times when income rises, spending tends to rise as well and you want to make sure your coverage allows your family to maintain their current lifestyle in the event something were to happen to the breadwinner.

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Outstanding Debt
The largest sources of debt for most Americans are their mortgage and student loans. When deciding on a coverage amount for a life insurance policy, your total debt should be considered to ensure whoever receives the proceeds in the event of your death will have enough to pay off your outstanding balances in full.

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In retirement, you may have fewer financial commitments such as mortgage payments and children to provide for. As you approach retirement you should review your existing life insurance coverage to make certain it still meets your current needs.

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Final Expenses
If you do not want to create a financial burden on your loved ones you may want to consider life insurance to fund for final expenses such as funeral costs.

Consult your Oppenheimer Financial Professional today to see which type of coverage is right for you.


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This brochure is intended for informational purposes only. The material herein has been obtained from various sources believed to be reliable but is not guaranteed by us as to accuracy or authenticity. All information provided and opinions expressed are subject to change without notice. No part of this brochure may be reproduced in any manner without written permission of Oppenheimer & Co. Inc. (“Oppenheimer”). Neither Oppenheimer nor any of its affiliates or employees provide legal or tax advice. However, your Oppenheimer Financial Advisor will work with clients, their attorneys and their tax professionals to help ensure all of their needs are met and properly executed. Investors should consult with their legal and/or tax Advisors before implementing any wealth transfer strategies. Securities are offered through Oppenheimer. Variable annuities are sold by prospectus only, which describes the risks, fees and surrender charges that may apply. Investors should consider the investment objectives, risk and charges of the investment company carefully before investing. The prospectus contains this and other information. You may obtain a prospectus from your Oppenheimer Financial Professional. Please read carefully before investing. Oppenheimer may receive compensation in the form of fees or commissions for services referred to and performed by our strategic alliance firms. However, Oppenheimer and the firms mentioned herein are completely independent of each other. Oppenheimer Life Agency Ltd. is a wholly owned subsidiary of Oppenheimer & Co. Inc. This material is not a recommendation as defined in Regulation Best Interest adopted by the Securities and Exchange Commission. It is provided to you after you have received Form CRS, Regulation Best Interest disclosure and other materials. Any payment guarantees are based on the claims paying ability of the insurance company. 3225612.1