Here's How I Can Help With
Your Life Insurance Needs

Have You Ever Really Thought About Why
You Might Need Life Insurance?

I don’t know if there has ever been a more misunderstood product or concern. So many people think that life insurance is for when they die. When your age or health finally deteriorates to a point of no return. Most people don’t want to even think about life insurance coverage during their prime years, but that is when the real concerns start. When a life insurance agent designs your policy correctly, it involves a layered approach. A significant reduction in the expense and increase in the coverage can often be achieved during the time when it could be needed most. You have to be careful to avoid the Worst Life Insurance Mistakes We All Make.

Your life insurance agent should design your policy to cover the different obligations and concerns that various stages of your life bring. Your coverage should adjust as your life situation evolves. You can be confident that your family and financial obligations are always protected in the event of your injury or death.

Life Insurance Road Map

Before Kids or Spouse

You would look at coverage simply because you see a need for later in life and by getting an early start to take advantage of locking in your health and age to reduce your overall long term expense.

Early Years with Kids or Spouse

The need here becomes more obvious, do you and your spouse make equal incomes? If something were to happen would the surviving partner be able to meet the needs of raising kids alone and working without completely changing everything? Do you have a mortgage and bills that the surviving spouse would now have to meet on their own?

• Might need 30 year coverage for mortgage.
• Possibly need 20 year coverage to care for young children to adulthood.
• Might want to have 10 + 15 year coverage for layered extra coverage in case something happens in the early years as this can be purchased at a much lower expense than longer guaranteed term coverage. This will usually be at least 40 – 60% of coverage at younger than 40 age.

Later Years with Spouse
Should review before kids reach 18 or before age 50

Now we’re in the home stretch when pricing and options start changing more dramatically. We see term options adjusting as companies start reducing the term lengths offered in which they will guarantee premiums. They design Term policies to run out of the locked in premiums before you attain average mortality age.

Here are some thoughts when planning forward:

• If you have a spouse who will have a retirement pension; you might want to consider permanent coverage so you can take your max pension at retirement versus a reduced amount for a joint life option. It will be too late if you wait till retirement…
• If you still have a mortgage for 20 – 30 years like so many do; again a 20 year term or permanent life insurance might be a good option.
• Do you have long term care or coverage for significant future health like heart attack, stroke or cancer, some companies offer living benefits in their permanent and or term plans which can help with these concerns?
• Do you own a business that you would like to go to a partner or a family member? Now is the time to put in place or update a succession plan if you have not already done this.
• Planning for the care of Special Needs Children is a growing concern. An increasing number of families are facing this responsibility. Who will care for them when you are gone? How will they get by on their own, maybe they can hold a job but not manage themselves or money? These concerns can be often be dealt with through insurance and a special needs trust.

The Late, Late years 60 – 90 years of age

I know what you’re thinking, How could you possibly still need to acquire coverage at this age? Many of us work hard all our lives to only finally achieve our income potential in the later years. This can open many new benefits and concerns. Early on your savings was limited, so these later years can be essential to your family and retirement. What happens if you are now making $150,000 and die? Those goals remain un-funded. Life insurance can help out in this situation to make sure your family has that retirement even if you were unexpectedly gone.

Other Reasons to Obtain Coverage

• Did you know one of the greatest gifts you can give your children is a legacy, you can give them an everlasting gift that propels them onto a path they may never have achieved on their own which is what all of us parents ultimately want for our kids.
• Maybe you did extremely well financially which can come with its own headaches to deal with. One major concern is now that you have worked hard and achieve your high net worth, how do you give it to your kids and grand kids without losing 40 – 60% to taxes and gains? Insurance is many times the best vehicle for this problem as well, especially if your assets are not liquid.

If you have any questions about life insurance planning, please don’t hesitate to contact Chris at (619) 980-7263. He will be happy to help you determine the proper level of life insurance to ensure adequate coverage for your family and financial obligations in the event of a loss.