Happy New Year! Hopefully your 2012 was fantastic and 2013 will be even better.
As the calendar turns over to a new year, it’s a great time to review your insurance, look for new discounts and identify potential deficiencies. Life insurance is one area that we usually overlook and put off, saying something along the lines of “I just can’t afford it right now.” However let me ask you this question: If you had a machine in your garage that printed money would you want to have it insured? Your income is that money machine to your family. Would they be able to still pay the bills without your income?
You want your loved ones to be financially secure if something happens to you. Life insurance offers them a way to do it. In fact, a life insurance policy can complement other insurance and financial products to help create a well-balanced portfolio.
Life insurance can help with:
• Making mortgage or rent payments.
• Providing an income to your family.
• Final expenses.
• Transferring an inheritance to your loved ones.
• Paying estate or inheritance taxes and costs .
• Business continuation.
On certain life policies, you can also access the cash value to help provide:
• Supplemental college funding.
• Supplemental income.
• Rewards for key employees.
• Long-term health care.
Here are some things to consider when trying determining how much life insurance you need:
• Mortgage or rent payments. (Remember, your family will need to pay all or part of your outstanding mortgage balance or make future rent payments.)
• Income replacement (to replace your income, multiply the percentage of income to be replaced by the number of years the income would need to continue).
• Education expense (keep in mind the costs of education continue to rise).
• Personal debts (to remove or reduce the financial burden on your family, it’s important to pay off any personal debts you may have).
• Emergency fund (experts suggest three to six months of income to meet unexpected expenses such as a new roof, auto repairs or tax obligations)
• Final expenses (the average cost of a funeral is now approaching about $15,000) .
Add up the totals from above. Then subtract your current resources (ie: assets or life insurance you currently have). The leftover amount is what’s not covered. Unfortunately many times that financial shortfall is a sobering reality. Never has a widow said that her husband had too much life insurance.
You want the best for your loved ones and the people that depend on you. That’s why my Nationwide agency and our staff will work with you to show you all the option and plans we have available. What matters most to you, matters most to us.
Information provided by Jeremie Jordan, Jeremie Jordan Agency, 655 Walnut St., Suite 136, Des Moines, 515-288-3004.