When was the last time you had your life insurance policies reviewed? Some changes that may require you to re-evaluate your coverage include marriage, divorce, a new baby, purchase of a new home, starting or expanding a business and retirement.
Do you have life insurance? Do you need it?
The amount and type of life insurance you select should be dependent on your personal and financial needs. We can assist you in determining an appropriate coverage amount and help you decide on which type of life insurance is right for you. Generally, you should consider life insurance if you have:
- A spouse
- Dependent children
- Aging parents or a physically challenged relative who depends on you for support
- Retirement savings that aren’t sufficient to ensure your spouse’s future financial well-being
- A sizable estate
- A business
One way to determine the amount of insurance you may need is by answering financial questions below that will help you determine the amount of income your loved ones may need in the event your income is lost.
- How much debt do you have other than your mortgage? Do you spend more than you earn?
- How much do you spend each month? The most accurate way to determine your monthly needs is to refer to your budget or bank statement to estimate your spending.
- How much do you save each month?
- What are your longer-term savings goals? How much money do you need to retire and pay for your immediate future? Are you saving enough to fund a future automobile purchase, retirement and education for your children?
- How much income do your survivors need if you aren’t around?
What are the different types of life insurance?
There are several different types of life insurance products available. The most common include:
- Term Life Insurance – provides life insurance protection for a specified period of time. If you don’t currently have life insurance, term can be a good place to start. It’s generally less expensive than permanent life insurance, and is available in varying term periods with fixed premiums from a one- (annual renewable term) to 30-year period (level term). Term insurance can sometimes be converted to permanent coverage, without medical proof, providing you with flexibility as your needs change.
- Whole Life Insurance – is a form of permanent life insurance that remains in force during the insured person’s lifetime, provided the premiums are paid as specified in the policy. Whole life insurance can build cash value as well as an increasing death benefit.
- Universal Life Insurance – is a form of permanent life insurance characterized by its flexible premiums, flexible face amounts, and unbundled pricing structure. Universal life can build cash value, which earns an interest rate that may adjust periodically, but is usually guaranteed not to fall below a certain percentage.
- Guaranteed Universal Life Insurance – is a life insurance policy with a guaranteed premium and a guaranteed death benefit without cash value.