All posts in Life Insurance

You may already have some life insurance, but is it enough? Think about the income needs your family will have if you die prematurely.

Life Insurance

Life Insurance rates are at an all time low!

Insurance used to be considered a luxury but with our increasing debt loads as consumers, it is now considered a necessity.

Rates have never been lower to purchase the insurance that you need. Insurance used to be considered a luxury but with our increasing debt loads as consumers, it is now considered a necessity. In other words, if someone depends of you financially,you probably need to purchase life insurance. Because of this awareness, prior to 2009, the booming stock market and growing Internet competition led to a nearly 70% drop in term life insurance rates from the early 1990s. Another factor:People were simply living longer, and insurers were having to pay out fewer benefits as a result. If you live through the length of your policy, the policy expires and the insurance company keeps the premiums.

Life Insurance- Are you Protected?

You may already have some life insurance, but is it enough? Think about the cash and income needs your family will have if you die prematurely. Which of these are concers to you and your family?

  • Final Expenses – Funeral expense, medical bill not covered by health insurance, executor’s and attorney’s fees, court costs, taxes, ect.
  • Debt Repayment -mortgages, car loans, home improvement loans, ect.
  • A place to Live – would you want your survivors to remain in the family home?
  • Monthly Essentials – food , clothing, daycare, medical care, electricity, gasoline, taxes- these are all essentials.
  • Non-Essentials life style needs – cable TV, the daily newspaper, children’s activities, sports equipment, vacations gifts.
  • Education – if you have children, do you have enough to afford a college education?
  • Emergencies and Opportunities – what about unexpected illnesses or a temporary layoff of your working spouse? Anew roof? A child’s Braces?A son or daughter’s wedding? Or, an unexpected business opportunity?

What other monthly obligations do you have?

Who Needs Life insurance?

  • Single individuals with college loans that need to be repaid
  • Young parents with children to support
  • Families with children who may one day want to attend college
  • Home owners with mortgage to pay off
  • parents of children with special needs, who will require financial assistance into adulthood
  • High-mnet-worth individuals and families with sufficient assets to trigger estate taxes
  • Owners of a family business who want to pass the business on a child or children
  • Business owners with one or more partners who may need to be bought out
  • Anyone who depends on their income or assets to provide for dependents
  • Anyone who depends on their income or assets to provide them or their dependents with a comfortable lifestyle.

Permanent Life Insurance

There are many different kinds of life insurance. Which kind of policy you should buy depends upon:

  • How much protection you need.
  • How long you will need it.
  • What you can afford to pay.

There are many different kinds of life insurance. Which kind of policy you should buy depends on how much protection you need, how long you will need it and what you can afford to pay.

Permanent Life Insurance

Permanent Life Insurance

Permanent life insurance provides coverage for an insured’s lifetime. It generates cash values that accumulates tax-deferred, and which can be borrowed against to cover college expense or to supplement income.

• Whole Life

– Provides a level death benefit, generally at a level premium. There are a variety of whole life policies, including those with limited, single or step-rated premium-paying durations.

• Universal Life

– Provides an adjustable death benefit. Cash values are based on the company’s current interest earnings and premiums are flexible so long as there is sufficient cash value to cover all policy charges and expense each year.

• Survivorship Life

– Provides coverage for two people, usually spouses, under one contract. The death is paid to the named beneficiary at the second death. Premiums are based on the age and rating of each insured.

Term Life Insurance

Term life insurance is designed for individuals with a temporary need for coverage.

Term life insurance is designed for individuals with a temporary need for coverage. It pays a benefit only if you die while the policy is in force , and it offers the most initial protections for the least amount of premium. Over time, permanent insurance is more cost-effective.

There are basically 2 kinds of term life insurance policies:

  • Level term – Provides a level death benefit for a specified period of years [ usually 5,10,15 and 20 years], at a guaranteed level premium.
  • Annually renewed Term – Provides a level death benefit for a specified period of years Premiums increase every year.

For specified period of time, most term policies can be converted to permanent insurance regardless of your insurability.