Life Insurance

A Cornerstone of Sound Financial Planning

Financial professionals generally consider life insurance to be a cornerstone of sound financial planning for two key reasons.  First, it can be a cost-effective way to provide for your loved ones after you are gone.  And second, life insurance can be an important tool in the following ways:

1.  Income Replacement  –  For most people, their most valuable economic asset is their ability to earn a living.  If you have dependents, then you need to consider what would happen to them if they could no longer rely on your income. A life insurance policy can also help supplement retirement income, which can be especially useful if the benefits of your surviving spouse or domestic partner will be reduced after your death.

2.  Pay outstanding debts and long-term obligations – Without life insurance, your loved ones must shoulder burial costs, credit card debts, and medical expenses not covered by health insurance using out-of-pocket funds.  The policy’s death benefit might also be used to pay off a mortgage, supplement retirement savings, or fund college tuition.

3.  Estate planning – The proceeds of a life insurance policy can be embarked to pay estate taxes so that your heirs will not have to liquidate other assets to do so.

4.  Charitable contributions – If you have a favorite charity, you can designate some or all of the proceeds from your life insurance to go to this organization.

How Much Life Insurance Do You Really Need?

Some people equate life insurance with tragedy and death.  In truth, life insurance is for the living.  Without it, the sudden demise of a key breadwinner could leave a family stranded without the resources to maintain their lifestyle – or even retain their home.

Not so long ago, professionals recommended that families carry a life insurance policy with a death benefit of between five and seven times their annual household income.  Today, however, in light of rising house prices in many parts of the country and spiraling college costs, most advisors now recommend eight to ten times income.

Unfortunately, most American families are underinsured.  According to statistics from industry research and consulting firm LIMRA International, the average American household carries just $126,000 in life insurance – approximately $300,000 less than they actually need – and only 61% of adult Americans have life insurance protection, a decline from 70% in 1984.

Determining How Much Life Insurance You Need:  A Four-Step Process

Step 1 – Determine your family’s short-term needs
Step 2 – Determine long-term needs
Step 3 – Calculate your total available resources
Step 4 – Provide funds to cover a shortfall

Products Available

  • Term Life
  • Term Conversion
  • Life Products
  • Survivor Universal Life
  • Whole Life
  • Simplified Life
  • Long Term Care
  • Linked Benefits
  • Universal & Whole Life
  • Health, Disability & Accidental Death
  • Cash Accumulation Product
  • Advanced Markets
  • Group Life

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