Three out of four people say they have a good understanding of Life Insurance. But do they? When asked how much the annual cost would be for a 20 year, $250,000 Term Life Insurance Policy for a healthy 30 year old, 80% over estimated the cost. One in four of the participants thought it would be $1,000 or more a year. In reality the average cost for the 20 year $250,000 term policy is about $160 a year. That’s a little over 40₵ a day.

WHO NEEDS PROTECTION?

If someone will suffer financially when you die, you need to use a life insurance policy to leverage those financial needs. A life insurance policy can help your family meet important financial needs such as replacing a lost income, paying off a mortgage and funding future college expenses. What’s more, there is no federal income tax on the life insurance benefits which leaves more of the death benefit to meet these financial needs.

Life insurance benefits can be applied to several different scenarios:

• Married With Kids
  Most families depend on two incomes to make ends meet. If you died suddenly, could your family continue to meet all their financial obligations? Could your family continue their standard of living on your surviving spouse’s income alone? Would their plans for the future stay intact? Life insurance makes sure that your dreams & goals don’t die when you do.
  
• Married but no Children
  Many people mistakenly believe that they don’t need to think about life insurance until they have children. Not true. What if one of you died tomorrow? Even with your surviving spouse’s income, would that be enough to pay off debts like college loans, credit card balances and car loans, let alone cover monthly household expenses. If you’re planning on having children, buy life insurance now while you are younger & healthy.
• Single Parent
  As a single parent, you’re the caregiver, breadwinner, cook, chauffeur and so much more. Yet nearly four in ten single parents have no life insurance and many with coverage say they need more than they have. With so much responsibility resting on your shoulders, you need to make sure that you have enough life insurance to safeguard your children’s financial future.
• Small-Business Owner
  Besides taking care of your family, life insurance can also protect your business. What would happen to your business if you, one of your partners or a key employee died tomorrow? Life insurance can be structured to fund a buy-sell agreement and this would ensure that the remaining partner(s) have the funds to buy the company interests of a deceased owner at a previously agreed upon price. To protect a business in case of the death of a key employee, key person insurance provides the owner(s) with the financial flexibility needed to either hire a replacement or work out an alternative arrangement upon the death of the key employee.

YOUR LIFE INSURANCE OPTIONS

There are many kinds of life insurance, but they generally fall into the following categories:

• Term Insurance
  Term Insurance is the most affordable type of insurance when initially purchased and it is designed to meet temporary needs. It provides protection for a specific period of time (the “term”) and generally pays a benefit only if you die during that term. For instance, you may decide that you only need coverage until your children graduate from college or a particular debt is paid off such as your mortgage.
• Permanent Insurance
  Permanent Insurance provides lifelong protection. As long as you pay the premiums and have no loans, withdrawals, or surrenders are taken, the full amount of the death benefit will be paid. Designed to last a lifetime, permanent life insurance accumulates cash value and is priced for you to keep it over a long period of time.
• Workplace Insurance
  Workplace insurance through your employer. Many employers provide at their own expense a basic group term life insurance benefit often equal to one to two times your base salary. While this is a nice benefit to have, insurance experts believe that most people need at least ten to fifteen times their income for adequate coverage. It’s also important to keep in mind that if you have group coverage and you leave your job, you generally are not able to take the coverage with you. When you leave your company you may need to pre-qualify to purchase your own private policy with rates that have increased with your age.

HOW MUCH INSURANCE DO YOU REALLY NEED?

As an Independent Insurance Professional I will review your personal needs with you and help you determine how much and what kind of insurance is right for you.

When you sit down with me to discuss your life insurance needs, the analysis I provide is free with no obligation to purchasing a policy. Call or email me to setup your Complimentary Consultation.