How does life insurance work

The basics of life insurance, explained. A guide to buying life insurance, including what to keep in mind and how to find the right policy.
Author: Brian Greenberg CEO of True Blue Life Insurance
Last updated: July 14, 2021

What is life insurance and how does it work?

Our primary mission is to make buying life insurance easy. The best way we can do that is by answering questions, starting with the fundamental ones — the “who, what, when, where, and why” (not necessarily in that order), and then moving on to “how.”

From there, we’ll tackle some of the more specific questions that might crop up as you get a little further into the process of shopping for and choosing the coverage you want or need.

If you want to take a shortcut, you can always talk with one of our friendly agents. They’re ready, willing, and able to help you figure out what kind of policy is best for your circumstances, how much coverage you should buy, and which companies are most likely to offer you the best price and/or the easiest route to getting insured. They will gladly answer any questions you might have, and it won’t cost you a penny. And you don’t have to worry about getting pressured into buying something you don’t want or need. That’s not how we do business.

Some people like to gather information on their own, though, especially when it comes to making a decision like this. If you’re one of those people, then by all means read on. Just know that we’re always here to help, if and when you need us.

Who should have a life insurance policy?

Basically, just about everybody who’s married and/or over the age of, say, 25 — and in some instances, even younger people — should have coverage. Seriously. Unless you’re wealthy with plenty of liquid assets on hand, have no family or dependents, have little or no debt, and are the very picture of health, you should have life insurance. Even if you are “all that,” there’s still a good argument to be made in favor of getting coverage. Why? Because your current circumstances are likely to change, and odds are it will cost you more to buy a policy later.

And that leads us to a bigger question: