Fundamentals

The various types of life insurance products available can seem overwhelming. In reality, life insurance is not that difficult to understand when you realize that the different policies are designed for a particular situation or objective. The following information may help you decide what type of policy is right for you.

Why life insurance?

Are you married?
If something were to happen to you, would your spouse be able to continue with the standard of living that they have become accustomed to?

Do you have children?
What if you were not around to provide for your children's future?

Are you in debt?
Do your loved ones have the resources to pay your financial obligations if you are no longer around?

Do you own a home?
Will your loved ones be able to continue living in the home that you've worked so hard for?

Do you own a business?
What would happen to your business if you or one of your key employees were not around to run it?

Are you planning to pass your assets to your loved ones?
Did you know that some individuals may lose a significant amount of their assets to estate taxes?

Have you thought about supplementing your retirement?
About 18% of adults think they'll have more than enough saved to retire in comfort1. Will you be able to retire on your own terms?

Is there enough in savings?
Do you have an emergency cash reserve to cover life's unexpected events?

What determines my life insurance needs?

Well it depends on your situation...


Replacing Annual Income

  • This may seem like an obvious reason to have life insurance, but it is extremely important to make sure that your loved ones are provided for in the case of a tragedy.

  • In 2014, the median household income was $53,8911


College Costs for Children

  • The cost of sending a child to college is increasing every year. Life insurance may be a way to fund your children's college education.

  • The average cost of private four-year college is $42,419 per year2.

  • The average cost of public four-year college is $18,943 per year2.


Value of your Services at Home

  • These services can range from child care to mowing the lawn. It is any service that would need to be replaced if you were no longer there to provide it.

  • Your services at home are often overlooked. If paid, a stay at home parent would earn $118,905 annually3.


Final Expenses

  • Final expenses are something no one wants to think about, but they can add up quickly.

  • The average funeral cost today is between $7,000-$10,0004.


Debt (Mortgage, Credit Card, etc)

  • Life insurance death benefit proceeds are federal income tax free, and may pay off or reduce any outstanding debt.

  • The average American home mortgage debt is $155,1925.

  • The average credit card debt per household in the United States is $15,6115.


Employer Provided Benefits

  • Any employer sponsored life, health, or disability insurance benefit may have to be replaced in the event of a tragedy.

  • Over the past decade, health care premiums have risen 89%6.


These are just a few factors that may go into determining your life insurance needs. Remember, the best way to make sure your life insurance needs are met is to meet with a financial professional who is a qualified life insurance agent.

Contact us

Interested in working together? Fill out some info and we will be in touch shortly. We can’t wait to hear from you!