As we have presented this September, life insurance can do some pretty amazing things for people. It can buy loved ones time to grieve. It can pay off debts and loans, providing surviving family members with the chance to move on with a clean slate. It can keep families in their homes and pre-fund a child’s college education. It can keep a family business in the family. It can provide a stream of income for a family to live on for a period of time. Life insurance can do all of these wonderful things for your family…there’s just one small catch. You need to own life insurance.
There’s a growing crisis of too many Americans not having adequate life insurance protection. According to the industry research group LIMRA, 30 percent of US households have no life insurance whatsoever. Today there are 11 million fewer American households covered by life insurance compared with six years ago. Here’s the bottom line: A majority of families either have no life insurance or not enough, leaving them one accident or terminal illness away from a financial catastrophe for their loved ones.
What if you were suddenly gone and your family had to manage on their own? When was the last time you did the math to make sure your loved ones would be OK financially? Have you checked with your employer to find out what kind of life insurance benefit you have through work and whether you have the option to increase your coverage? When was the last time you had your life insurance needs reviewed by an insurance professional? Northeast Financial Strategies is here to help!
Your life insurance coverage should be reviewed on a regular basis to ensure you have adequate coverage, but a major life change is a particularly important time to assess your life insurance needs. Here are three life events when you should review your life insurance policy:
1) A change in family situation: Did you get married, divorced, have a baby, adopt children, or change jobs? Any of these life events are likely to change the amount of life insurance coverage you need.
2) An upward change in your income: A big promotion or a raise may be a good reason to review your coverage. Life insurance is often purchased to replace the income of the breadwinner in a family. If your income increases, you may need to review the face value (the amount paid to beneficiaries at the policyholder’s death) of your life insurance policy.
3) Retirement: If retirement is just around the corner, it may be time to assess your life insurance policy. According to the Insurance Information Institute (III), life insurance can keep surviving spouses from receiving reduced Social Security benefits. For example, those who begin collecting Social Security survivors benefits at age 60, rather than at the full-benefit age of 66 or 67, receive a permanently reduced Social
Security benefit. Having life insurance coverage in place may prevent your spouse from having to live on less.
These may not be the only reasons to review your insurance policy; however, these events cover three times in your life when you should review your life insurance needs. Please contact us for your Complimentary Review.
No one knows what the future holds. Hopefully, only good things are in store for you.
But realistically, bad things will happen too.
Even if you don’t consider yourself a cautious person, you take little steps every day to improve the odds that good things will happen and guard against the possibility of bad things happening.
You wear seat belts.
You lock your doors when you leave home.
You try to eat well and exercise.
In other words, you may not be able to control the future, but you can stand up to it. You don’t have to get wet when it rains. You can carry an umbrella.
True, it’s easy to take these little steps. The bigger steps, though, can require contemplating some pretty unpleasant things.
What would happen to your family if you became ill or injured and couldn’t work? Or, worse yet, if you died? Or if your spouse died?
Standing up to the future means making sure you and your family can carry on, even in the face of a disaster. That’s where life insurance and other forms of insurance come in.
Life insurance won’t guarantee you’ll never face a tragic situation, just as wearing a seat belt won’t keep you from crashing your car. But it will provide your family with financial protection. And whatever hopes and dreams you have for your loved ones can still be realized, even if the worst were to happen.
That’s why we say LIFE Happens. It really does. No matter what the future throws at you. September is Life Insurance Awareness Month and we here at Northeast Financial Strategies are offering Complimentary Life Insurance Reviews – contact us for your appointment now!
So, why do you need life insurance?
What often comes to mind when thinking about life insurance is that you can use it to pay final expenses. You’ve seen the commercials: Funeral expenses, burial costs and medical bills can add up to a hefty amount. The last thing you want is for your loved ones to shoulder this extra burden. Life insurance can be used to plan for these final expenses. Permanent life insurance is available in various amounts, so you can pick a death benefit that meets your needs.
But there are other considerations to keep in mind. You can use life insurance …
As mortgage protection. Whether you live by yourself, with a spouse or significant other, you may want to buy life insurance as mortgage protection. Think about it: You don’t want the person you live with to be homeless if you die unexpectedly, do you? Term life insurance can be used to pay off an outstanding mortgage balance. Just select a term that matches the length of your mortgage payment period. Some companies even offer decreasing term insurance, which means the death benefit decreases along with your mortgage balance.
For income replacement. You and your significant other may have planned for a future based on two incomes, but what if one of you passes away unexpectedly? Life insurance can be used to replace the lost income so the survivor can maintain the same standard of living.
For college funding. Yeah, I know. You don’t have kids, so this one only applies if you do or if you have grandchildren you want to help. Have you seen the tuition rates lately? Life insurance can help fund a college education. If you die, the death benefit may be invested and potentially grow to the needed amount by the time your children or grandchildren reach college age. If you have permanent policies, the cash value may be used to help fund tuition costs. Feel better knowing that you helped prepare for their future—even if you are not there to see it.
There are also a few provisions—additional benefits, if you will—that you may not be aware of.
Probate protection. If the beneficiary of a life insurance policy is a named person and not your estate, the death benefit is free from probate costs.
Incontestability. After the policy has been in force for two years, it becomes incontestable, meaning that the policy cannot be revoked, unless it was fraudulently obtained.
Free from the claims of creditors. In many states, the cash values of the life insurance policy are free from the claims of creditors if the policy is personally owned.
So, are you starting to see the need for life insurance? You will call me right now, right? The number is 800-560-4637 x14. Don’t put it off! Remember, the younger you are when you get insurance, the lower the cost and the easier it is to get approved.
This is the award winning video created by Jeffrey Schweitzer of NFS-Northeast Financial Strategies for Life Insurance Awareness Month back in September 2011.