When it comes to life insurance, what we’re really talking about is problem solving ahead of time. Whether you’re married or single, employed or in business for yourself, early planning for those you’re financially responsible for makes sense.
But though it makes sense, we understand how tough it is to ask yourself the question “What if I die today?” But asking difficult questions and managing risk is our business, so here we go…
If you die, will your loved ones be able to financially carry on without you? Can they maintain the house and cars? Will your spouse be able to afford the kids’ college? You might think that since your spouse is working, what’s the problem? Thing is, like most families, you likely rely on both incomes to afford your current lifestyle.
If you’re in business, how much of a financial loss will the company suffer without your work? Do your partners have the money to buy your family out? Or if it’s just you, will your family have to sell at bargain prices because they need the money right away?
These tough questions reveal problems that may seem insurmountable. But the thing is, they are easily solved. And, yes, life insurance is the answer.
Your life insurance company cuts a check to your beneficiaries for the full amount after you die. The beneficiaries are your loved ones, your business partners, charities, or other entities that you personally name on your policy.
They receive the money tax free and within days after you die. All in all, life insurance is a clean, quick, and efficient way to get money to the important people in your life. But then the question is, how much should you insure yourself for?
Think of it this way. How much income would your family need to carry on in the way that you want them to. And how much income at different stages of their lives. Expenses are high when the kids are home. Then even higher when they’re in college. But then they leave home and obligations decrease.
In business, think of the cost for your partners to buy you out. If it’s just you, how much to keep the business going until your family can sell it at or above its market value.
Figure out how much that adds up to or how much should be invested to produce the income you’ve decided on. Then buy as much insurance as you can to get as close as possible to that amount. Remember other incomes in your calculations: accrued retirement benefits, savings, anticipated inheritances, etc.
Give us a call and we’ll help you figure out the right amount. And we’ll talk about term insurance and more permanent plans. The main thing to remember is that even if you can’t afford the perfect amount, whatever you buy will quickly help your family with the money they need to carry on.
The other thing is that life insurance pricing is based on your age. And underwriting is based on your health. That means that the best time to buy is when you’re young and healthy.
That doesn’t mean that you can’t get a policy if you’re older or have health problems. We are an independent agency and we have many companies offering plans that will accommodate your situation.
So give us a call. You’ll get the peace of mind you deserve while you’re still enjoying your family and your work.
Until next time,
Your SZW Team
SZW Insurance is your Utica area Trusted Choice™ independent insurance agent. Call us for a quote on insurance for your home, car, business, or life at 315.792.0000. Or request a quote here.