When you’re just starting out, it often seems that a dollar never stretches far enough. And with new commitments, such as buying your first home or having children, comes the responsibility to make sure your loved ones will be provided for financially, no matter what life may bring.
If you were to die unexpectedly, life insurance is there to make sure your loved ones can maintain their standard of living, stay in your home, send your kids to the same schools and keep their plans for the future on track. It also gives the grieving spouse or partner time to make decisions, or in some cases find work outside the home, without worrying about finances.
But common misconceptions often prevent young families from purchasing the life insurance they need.
Myth 1: I only need life insurance if I’m the primary breadwinner in my family. Whether you bring home the largest paycheck in your household or a smaller one, your family relies on your income to maintain its quality of life, and it would be missed if something were to happen to you. Even if you don’t work outside of the home, having life insurance is a smart choice. Stay-at-home parents perform valuable services such as childcare, cooking, housecleaning and household management, which can be costly to replace for a surviving spouse or partner.
Stay-at-home parents perform valuable services such as childcare, cooking, housecleaning and household management, which can be costly to replace for a surviving spouse or partner.
Myth 2: If I buy a term life insurance policy and find that I still need protection when the term ends, I can always renew the policy. Term policies are quite popular with many young families, and for good reason: They typically offer the greatest coverage for the lowest cost. Term insurance provides protection for a specific period of time (the “term”), and can be ideal for people who feel they have financial needs to cover that will disappear over time, such as a mortgage or a child’s education.
However, many families realize that even after the kids are grown and the mortgage is paid off, their need for insurance continues—to provide income for a surviving spouse, eliminate debts, pay taxes, etc. Because life insurance premiums increase with age, renewing your policy when the term expires can be very expensive. Moreover, poor health may make renewal impossible.
Myth 3: I only need term life insurance. Term life insurance makes sense for many young families because their need for coverage is great and their budgets are often limited. But that doesn’t mean it’s the only type of insurance you should consider.
Permanent life insurance policies provide a death benefit as well as other unique features such as lifelong protection and the ability to accumulate cash values on a tax-deferred basis, similar to assets in most retirement-savings plans. You can access the cash values for important uses like a child’s education or a business opportunity. (Keep in mind, however, that withdrawing or borrowing funds from your policy will reduce its cash value and death benefit if not repaid.)
If any of this sounds daunting, just know that it does’t have to be. You can start by doing a quick calculation on your own to see if you need life insurance with this Life Insurance Needs Calculator (or just click on “What’s Next” below). And just know that you can also talk things through with Kelly Burk Insurance at no cost. We will help you figure out how much you may need, and also find a policy that fits into your budget.
Source: www.lifehappens.org
An important question you need to ask yourself is how will my family manage if something happens to me! No one really wants to think about Life Insurance, but if someone depends on you financially, it’s a topic you can’t avoid.
“Life Insurance isn’t for the people who die
It’s for the people who live.”
What will your family do if the primary wage earner passes away or gets sick? What assets are you willing to give up to make ends meet? These are questions that many people don’t think about until it is too late.
Life Insurance Can Help
A Life Insurance Policy pays cash to your family after you die, allowing loved ones to remain financially secure. In the event of a tragedy, life insurance proceeds can..
Immediate Expenses:
- Funeral Costs
- Uncovered Medical Expenses
- Mortgage, Car loans, Credit Card Debt
- Taxes
Ongoing Expenses
- Food
- Housing
- Healthcare
- Clothing
- Insurance
Future Expenses
Getting Life Insurance doesn’t have to be hard (or boring). The importance of life insurance is helping them get the coverage they need.
There are many types of life insurance but for all of them, the bottom line is the same, they pay your family after you die, allowing loved ones to remain financially secure.
And, many people haven’t bought life insurance or more of it because they’re unsure of how much or what type to buy.
How much Life Insurance do I need?
The most important part of buying life insurance is determining how much you need. Since everyone’s financial circumstances and goals are different, there is no rule of thumb to tell you how much to buy.
Doing The Math
To start, estimate what your family members would need after you’ve gone to meet immediate (i.e. funeral), ongoing (i.e. rent or mortgage, other everyday bills), and future financial obligations (i.e. college and retirement).
Add up the resources your surviving family members could draw upon to support themselves (i.e. savings, spouse’s pension, etc.). The difference between the two is the amount you would need in life insurance.
You Can Afford Life Insurance!
$250,000 In Life Insurance Will Cost
Age: Male: Female:
35 Years Old $10.72 $10.26
45 Years Old $18.09 $15.54
5 Years Old $40.24 $29.89
*These rates are based on a 10 year term, preferred rating, and are subject to underwriting.
I can help you understand the differences between Life Insurance and what is the right coverage for you. Please contact me to find out more at 708.444.0050 or kelly@kellyburkeinsurance.com.
Life Insurance Awareness Month
Life Insurance Awareness Month is in full swing. No one really wants to think about Life Insurance, but if someone depends on you financially, it’s a topic you can’t avoid. This is the time to review your life insurance situation.
What will your family do if the primary wage earner passes away? What assets are you willing to give up to make ends meet? These are questions that many people don’t think about until it is too late.
Life Insurance Can Help
1 in 3 households would have immediate trouble paying living expenses if the primary wage earner died, according to the 2016 Insurance Barometer Study by Life Happens and LIMRA
In the event of a tragedy, life insurance proceeds can…
- Help pay the bills and meet ongoing living expenses
- Pay off outstanding debt, including credit cards and the mortgage
- Continue a family business
- Finance future needs like your children’s education
- Protect a spouse’s retirement plans
Getting Life Insurance doesn’t have to be hard (or boring). The importance of life insurance is helping them get the coverage they need. There are many types of life insurance but for all of them, the bottom line is the same, they pay your family after you die, allowing loved ones to remain financially secure.
And, many people haven’t bought life insurance or more of it because they’re unsure of how much or what type to buy.
Do You Have Enough Life Insurance ?
Life insurance is something that no one likes to talk about; however 86% of Americans believe that life insurance is something most people need. So, how do you determine how much life insurance you will need?
Doing The Math
To start, estimate what your family members would need after you’ve gone to meet immediate (i.e. funeral), ongoing (i.e. rent or mortgage, other everyday bills), and future financial obligations (i.e. college and retirement).
Add up the resources your surviving family members could draw upon to support themselves (i.e. savings, spouse’s pension etc.). The difference between the two is the amount you would need in life insurance.
For health insurance, I try to get a full picture of your health history to understand what services will be used to determine which plan/carrier is best. I review rates annually. Although you may not hear from me, I am reviewing your package each year to make sure you are STILL receiving the best coverage for your needs.
I can help you understand the differences between Life Insurance and what is the right coverage for you. Please contact me to find out more at 708.444.0050 or kelly@kellyburkeinsurance.com.
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