How will your family manage financially when you pass away? None of us want to think about death let alone what would come in the aftermath of such an occurrence, but if someone depends on you financially you cannot avoid this question.

If the unthinkable happens and you pass away leaving your family unprepared financially, you will have wished you invested in even a small amount of life insurance protection to take care of things such as:

  • Outstanding liabilities or debt such as a mortgage and credit cards
  • Funeral or final expense costs
  • Unpaid bills and ongoing living expenses
  • Protecting your spouse’s nest egg
  • Cover your children’s education costs

Perhaps you are single. Do you still need life insurance? Most single people do not but if someone depends on you for financial assistance such as a sick and/or aging parent or you have debt you do not want to leave behind for family members to deal with, life insurance is a wise, inexpensive form of protection.

Perhaps you purchased life insurance already? Have you reviewed it in the last 3-5 years to make sure it still meets your needs? What type of policy was it, how much coverage, and for what specific reasons did you purchase it?

Life is very fluid and many people experience certain changes that would necessitate a change in the type and/or amount of life insurance they have. Chances are you’ll need to increase your amount of protection if you’ve had the following examples of life-changing events:

  • New-born baby or adoption
  • Significant wage increase
  • Home purchase or re-finance
  • Started a business

Buy-sell and key-person

Life insurance can also be used to fund a buy/sell agreement. A business can insure the owners so that when one of them dies, the business can use the proceeds from the insurance to purchase the ownership interest from the deceased owner’s heirs.

Life insurance can also be used to compensate the business for financial losses due to the death of an important member of the business.

Contact us for a free, no-obligation life insurance needs analysis to determine whether the policy you purchased in the past still meets your needs today.

Two Main Types of Life Insurance

  1. Cash Value which not only provides a death benefit but can also accumulate cash value, tax-deferred
    • Examples:
      • Universal Life
      • Whole Life
  2. Term which has a level face amount and premium for a specified “term” or period of time (usually up to 30 years depending on your age at the time of applying).
    • Main advantage of term life insurance:
      • Inexpensive
      • Convertible to cash value or permanent type of policy before initial term expires

Life insurance may not be as expensive as you think

86% say they haven’t bought life insurance because it’s too expensive, yet overestimate its true cost by more than 2x. (source: LIMRA and LIFE Foundation 2013 Insurance Barometer Study).

The cost of life insurance can vary based on your age, whether or not you use tobacco, medical history, and to a degree even immediate family medical history. Other factors that can affect cost include involvement in any hazardous avocations such as skydiving, scuba diving, etc. however involvement in such activities does not necessarily preclude you from qualifying for life insurance. If you have concerns about qualifying and don’t want to go through the application process only to find out later that you’re not insurable, contact us today to do a free pre-risk assessment so you can get an idea of what life insurance companies will offer you before you apply.

As an independent agency, we have access to a variety of national A+ rated carriers offering you some of the most competitive rates available on the market.

Contact us today to help you find a policy with the most affordable premium that fits your needs.