Life Insurance

It’s been said that purchasing life insurance for your family is a true act of love. Think about it!

When you see that elderly person working in a minimal wage setting, have you ever wondered if they just love working or do they have to work to supplement their income? After all, they’ve worked all their lives; didn’t they plan to retire or take it easy? Ask yourself these questions? Is that what I want to happen to me? Is that what I want for my spouse? If I died tomorrow, how would my loved ones fare financially?

If someone depends on you financially, you need adequate life insurance.  Let’s face it, when you die, life still goes on for your family. How well they do is up to you! If you can’t be here, doesn’t it make sense to at least replace the income they lost due to your premature death? Life insurance provides cash to your family after your death. This cash, commonly referred to as the death benefit replaces your income. It can help your family meet many important financial needs like normal daily living expenses, mortgage payments and dreams of college for your children.

Basic daily living expenses include housing, food, clothing, transportation costs, healthcare, etc. We haven’t even mentioned their quality of life. What about all the bills associated with death; or worse an extended illness before death? Would they have the money to pay for your final expenses, which include funeral costs, medical bills, taxes, debts, attorney fees, etc?

I’ve heard many excuses for not purchasing adequate coverage during my 36 years of selling life insurance; but they can’t be published here. While some might think they are being funny; many of the excuses are tragic and some are vulgar. Unfortunately, most of them come from the denial that there is a problem or their unwillingness to solve a problem that could be fixed so easily.

You need life insurance protection if:

• You're Single
  While many single people may not need life insurance because no one depends on them financially, there are some exceptions. They may have outstanding college debt that they don’t want to burden any family members with. They may wish to provide financial support for aging parents or siblings

• You're Married
  Since most families depend on two incomes today, could your family continue their standard of living on one income? Probably not!

• You're a Single Parent
  With so much responsibility, you must have enough life insurance. After all; you are the caregiver, breadwinner, cook, chauffeur and everything in between.

• You're a Stay-At-Home Parent
  The replacement value of childcare, nursing, cleaning, cooking, transportation and shopping along with all other household activities are all very important services. Some surveys have estimated their value at over $40,000 per year. Could your spouse afford to pay someone else for these services?

• You’re an “Empty-Nester” and Your Mortgage is Paid
  Just because the children have left and your mortgage is paid in full doesn't necessarily mean that Social Security and your savings will be enough. Your surviving spouse will still be faced with those daily living expenses mentioned above. Your spouse could outlive you by 10, 20 or possibly 30 years; and that is downright scary without adequate income.

• You're Retired
  Your heirs could be hit with a large estate tax payment after you die depending on the size of your estate. Life insurance proceeds are payable immediately, allowing heirs to pay estate taxes, funeral costs and other debts without having to liquidate other assets at a fraction of their true value.

• You Have a Life Changing Event
  Life changing events include getting married, having a child, buying a home, changing occupations, taking on debt, going into business, supporting aging parents, planning for college and retirement to mention a few.

Although there are many types of life insurance policies; they all fall into two general categories listed below. It's impossible to say which type of life insurance is better because the kind of coverage that's right for you depends on your unique circumstances, health & financial situation and what you wish to accomplish.

All I know for sure is that the best policy to have is the one that is in force when you die. If you think life insurance is too expensive, just think how expensive it will be for your loved ones without it. If you can’t afford a large policy, at least purchase something for your family’s peace of mind. Some death benefit is always better than none and more death benefit is always better than less!

Term insurance is designed to meet a temporary need. It provides protection for a specific period of time (the "term") and generally pays a benefit only if you die during that term. It does not accumulate any cash value. This type of insurance often makes sense when you have a need for coverage that will disappear at a specific point in time; such as a mortgage.

Permanent insurance provides lifelong protection. As long as you pay the premiums and no loans, withdrawals or surrenders are taken; the full face amount will be paid at death. Permanent life insurance accumulates cash value and is priced accordingly because it is designed to last a lifetime.