Protecting Your Loved Ones

You want the best for your family and to make sure they are taken care of for years to come. And while no one wants to think of a time when they will not be around, planning for uncertainty is necessary, especially if there are people who rely on your income.

Life insurance is one of the ways to potentially guarantee expenses will be paid and your dependents (spouse, children, elderly parents, etc.) will be financially protected if something unexpectedly happens to you. Like auto or health insurance, life insurance is a policy that you pay a set annual premium, for a certain period of time and in exchange you are covered in the event of an emergency. There are several types of life insurance and each offers specific benefits depending on your personal needs.

We’ve come up with a simple list that can walk you through questions you need to answer before selecting the life insurance plan and amount of coverage that is right for you. 

First, let’s consider how much you need. Generally, determining how much you need depends on factors like:

• Are you the primary breadwinner?
• Do you have dependents that rely on your income?
• How much of your income needs to be replaced? (it takes around $1,000,000 to replace $50,000 of income)
• Do you need to cover immediate obligations such as: final expenses, uncovered medical bills, outstanding debts, mortgage balance, to name a few?
• Do you want to ensure the cost of a college education for your kids? 

Once you have determined how much life insurance you need, you then need to decide what kind of insurance you should get. A common type of life insurance is term where you pay a premium for a certain amount of time.

• Do you need life insurance for a fixed term (10, 15, or 20 years)?
• Do you want to create a cash reserve?
• Do you want to build in contingencies to cover Long Term Care costs?

Finally, once you have determined the amount of life insurance you need and the plan that is the best fit for your family, you should consider how you will share the information with your loved ones. Here are few things to consider:

• Who will you share your life insurance information with?
• Do they know how to access your account?
• Have you designated a dependent to be the contact for your life insurance claim?
• Have you decided where to keep your policy information?
• Have you shared your wishes with your family (funeral arrangements, where your will is located, other important wishes).

This material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. For information about specific insurance needs or situations, contact your insurance agent. This article is intended to assist in educating you about insurance generally and not to provide personal service. They may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation or activities which may affect the type of insurance that would be right for you. In addition, state insurance laws and insurance underwriting rules may affect available coverage and its costs. Guarantees are based on the claims paying ability of the issuing company.