Life Insurance Is Worth It In The End
Deciding whether you need life insurance can be a complicated process. The decision can be even harder when you are younger. Today Elaine Mahr highlights some of the issues that you should think about. Be sure to listen in to find out more about the cheapest insurance policy one can own that has the most benefits to your loved ones.
Life Insurance Audio:
Let’s start with the most obvious reason for why someone should invest in life insurance … the fact that it can replace your income if you die before your dependents. You may want your children to go to college and your family to enjoy a certain kind of lifestyle.
The difference between whole life, universal, and term would be good. How much life insurance does someone need? Should the product they choose differ by their age?
What are the basics of Life Insurance?
- Term – These policies pay a benefit only during the term period that the insurance covers.
- Permanent- This whole life policy has several types of sub categories of each type and usually pay a benefit to your beneficiaries when you die.
How do you decide what is best?
The amount of insurance you need depends on what you want it to cover. Look at how much you earn and how many years your family will neet to replace that income if you were to die prematurely versus how much you have already save. Be sure to look at what items you want to make sure would be paid for:
- Need? (LIFE)
- Liabilities
- Income Replacement
- Final Expenses
- Education
- Purpose?
- Mortgage protection insurance
- Funding retirement
- Leaving a legacy
How Much Can I afford?
Many clients are looking for investment options for their savings not to mention the tax benefits that can come along with it.
Consider the following when making this decision:
- Time horizon
- Term – how many years do you want to guarantee the premium? Is it convertible?
- Age
- Risk tolerance – This determines the type of permanent insurance you want. Whole Life, Indexed Universal Life, Variable Universal Life
- Adding to my investment portfolio
- What if I become terminally ill?
- Can I sell my policy to help with my cash flow?
- Can this act as a cash reserve to cover my income when I can’t afford my premiums?
The Bottom Line To Life Insurance
Life insurance isn’t for everyone. However, you should not dismiss it’s importance without doing the research. If you have others who depend on you financially, it is very likely that you need to have it.
Call Elaine Mahr today to review your particular needs!
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