Life Insurance Awareness Month is a timely reminder for Cincinnati families to review the protection they have in place for their loved ones. With a variety of policies on the market, many households find the choices confusing. To help residents make an informed decision, WealthQuest invited its director of financial planning, Megan Hammann, to discuss the most common types of life insurance and how each can serve different family needs.

Term life: affordable coverage for a set period

Term life insurance provides a death benefit for a specific number of years—typically 10, 20 or 30. It is the most budget‑friendly option because it does not build cash value. Hammann notes that term policies are ideal for parents who want to ensure that a mortgage, college tuition or other short‑to‑mid‑term obligations are covered if the primary earner passes away. The premiums are fixed for the term, making budgeting straightforward for families living on a single income.

Whole life: permanent protection with cash value

Whole life insurance remains in force for the insured’s entire lifetime, as long as premiums are paid. In addition to a death benefit, a portion of each premium builds cash value that grows tax‑deferred. Hammann explains that this cash component can serve as a low‑risk savings vehicle, useful for emergency funds or future expenses. Because whole‑life premiums are higher than term, it suits families with stable, higher incomes who value the dual benefit of lifelong protection and a forced‑savings element.

Universal life: flexible premiums and adjustable benefits

Universal life policies combine the permanent coverage of whole life with greater flexibility. Policyholders can adjust premium payments and death benefits within certain limits. This adaptability can help families whose financial situation may change over time—such as a growing business or a shift in employment. Hammann cautions that the cash‑value growth depends on interest rates set by the insurer, so regular review is essential.

Choosing the right policy for your family

Hammann recommends a three‑step approach for Cincinnati residents:

• Assess your financial obligations. List debts, future education costs, and any other long‑term commitments.
• Determine your budget. Decide how much you can comfortably allocate each month without compromising essential expenses.
• Match the policy to your goals. If affordability is paramount, term life may be best. If you desire lifelong coverage and a savings component, whole or universal life could be appropriate.

She also stresses the importance of reviewing policies regularly, especially after major life events such as the birth of a child, a new home purchase, or a career change. Adjusting coverage ensures that protection remains aligned with a family’s evolving needs.

Local resources and next steps

WealthQuest offers complimentary consultations for Cincinnati residents who want personalized guidance. Interested families can schedule an appointment through the company’s website or call their local office. By taking advantage of these resources during Life Insurance Awareness Month, households can secure peace of mind and protect the financial future of the people they love.

For more information on life‑insurance options and to watch the full interview with Megan Hammann, visit the WLWT Money Monday segment linked below.

Original reporting: WLWT Cincinnati — read the source article.