Your browser is out of date.

Top 8 life insurance questions we’re hearing

Individuals 08.22.2022 4 MIN

Especially around Open Enrollment, you may have questions about life insurance options. We’re here to answer them and share guidance from one of our Financial Wellness coaches about how to assess your needs and maximize your resources.

Why should I care about life insurance?

Having life insurance is a way to protect the people who matter to you when you’re no longer with them. While thinking about a future for them that doesn’t include you isn’t easy, making sure that your family has the resources to protect their finances and help them achieve their goals can help you—and them—have peace of mind. With the right plan in place, you can feel more confident your family will be prepared to meet their financial needs and weather uncertainty.

Liam, a Financial Wellness coach, recently worked with a new father considering life insurance needs for his growing family. In addition to purchasing his first home, he had just celebrated the birth of his newest family member. 

3903-FW-PNG Coach quote template


How much life insurance do I need?

 The answer to this question will be different for everyone and depends on your circumstances.

  • What is your lifestyle? Where are you in your career?
  • What do you feel confident in, financially? And what could you use some help with?
  • Do you have dependents? If so how many, and for how many years will they need financial support?


Want some help walking through your options? Your Financial Wellness coach can work with you one-on-one to provide clarity and help you make the decision that’s right for you.


What types of life insurance are there?

There are two main types: Term and Permanent. Term life insurance is a set premium for a time period of 10, 20 or 30 years. Permanent life insurance stays with you your whole life and builds a cash value.

Depending on the type of permanent life insurance you purchase, you may get a cash payout in varying ways. Factors that affect the payout include:

  • The length of time you may need the insurance
  • Your risk tolerance
  • The potential that you may need to tap into a cash value
  • Your desire for flexibility


How much will insurance cost me?

The cost of your policy will depend on the type and amount of coverage you purchase and your insurance needs. You may be single, with no mortgage. If so, your insurance needs may be low. You may be nearing retirement with grown children and no mortgage, but still want some protection. Your needs may be in the middle. Or you may have young children, a new home and spouse who greatly depends on your income. Your protection needs are high.

If your company offers Goldman Sachs Ayco as a benefit, you can work one-on-one with your coach to calculate the right protection to fit your personal situation. Discussions with your coach are completely confidential and can help you to fully understand options and the potential impact to your cash flow.  


What is a cash value and how do I use it?

Some types of permanent life insurance may build up a cash value that can be borrowed against, or even withdrawn from, potentially tax free. The premiums that you pay on your policy are divvied up to cover the death benefit, as well as the fees and expenses of the policy. A portion of your premium may be set aside in a cash value account that earns interest or can be invested in the market.


I bought a policy years ago and I really don’t understand it, or even know if I still need it. What are my options?

A Financial Wellness coach can help you understand your policy and determine whether it fits your needs now. If it turns out that it doesn’t, you could have several options we can walk you through.


Should I designate beneficiaries?

It is always a good idea to list a beneficiary so your intentions are clear. The primary beneficiary is the person who will inherit the proceeds of the insurance policy. You may also choose a contingent, or secondary, beneficiary who would inherit if the primary beneficiary is not able to do so.


Does my employer provide life insurance?

Often employers do provide life insurance. You can check with your company’s benefits officer to understand the employer-provided life insurance you may currently have. However, you should look at employer-provided life insurance as one piece of the total life insurance picture.

If your company offers Goldman Sachs Ayco as a benefit, you have the option of using the Goldman Sachs Ayco Protect tool to calculate how much life insurance you may need and potential insurance products for you.

Your Financial Wellness coach is an additional and completely confidential resource to help you understand your exact needs and how to best maximize your financial resources.

If you have Goldman Sachs Ayco as a company benefit, register, log in or download our Goldman Sachs Wellness app to learn more about this and other financial wellness topics.