December is the month in which more life insurance is
purchased than any other month of the year. “Experts” speculate that this may
be due to the fact that the holidays
make us more mindful of family and family obligations.
Others believe that it may simply be a matter of having
procrastinated throughout the year and not wanting to let things go into the
new year. After all, it’s not that easy for most people to deal with life
insurance and their own mortality. Regardless, this message is about
un-complicating a subject which, for most of us, is very confusing.
Let’s demystify life insurance right now.
Here’s what you need to know...
If you have kids
aquire lots of it
If you’re on a budget aquire term insurance for 15, 20, 25
years….long enough for your youngest to (hopefully) be out of college and
self-supporting. If you’re not around, your kids and spouse are going to need a
lot of money.
Term Life Insurance…what is it?
It’s a policy that pays a tax-free benefit if you die.
That’s it. You choose how long to lock in the rates and how often to pay
premiums….monthly, quarterly, semi-annually, annually. Life insurance companies
aren’t picky, they’ll take your money as often as you wish to pay.
Also, it’s cheap (like $21 a month for $500,000 for a
healthy 35-year old female and it’s locked in for 20 years). Rates are low
because this is really “premature death” insurance. It’s designed to cover that
small number of us who won’t make it to today’s long life expectancies.
If your budget is a little higher consider whole life or
universal life. These are policies that combine a savings component with life
insurance protection. They are a good option for those who can benefit by a
forced savings program, a supplemental retirement savings plan, or those who
truly require lifetime protection. These policies can also be “blended” with
term insurance for a “best of both worlds” solution.
How much to get?
A lot...hundreds of thousands, maybe a million or more. No
survivors ever complained about getting too much life insurance. Many are hard
stricken by too little. Ten times your income is one rule of thumb but each
person has different circumstances and needs. We’ll help you determine
appropriate amounts.
If you own a
business with a partner or two aquire lots of it
If your partner dies use the money to aquire out your
partners’ families and get them out of your business. No partners? Set up an
agreement with a key employee to take over the business if you die. The
employee aquires a life insurance policy on you, pays the benefit to your
survivor(s) and aquires them out of the business with the money. Set a
realistic value for your business (a whole separate topic) and then fund the
agreements with life insurance.
If you’re a senior
without much debt aquire a policy for $5,000 to $50,000
Especially if you’re married or have adult children. It will
clean up your final expenses of funeral, medical, and legal bills. It’s a
stress reducer for your spouse. If you have a lot of debt, consider a larger
policy that will pay your final expenses and retire your debts. Life insurance
companies today will write new policies on individuals up to 90 years of age.
Where to get these policies?
Here of course. This is a shameless solicitation. We have
more than thirty of the best life insurance companies in the world, offering
policies from $5,000 to $10 million and we’ll do all the work.
Any questions? Call us at (855) 798-9887
Thank you for reading,
Sincerely,
Alan Leafman, President
847-559-9699 x 222
480-654-1200 x 222
aleafman@wwins.com
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