preheader 888.802.0003
                     To Get Help Now
Navigation

 

  MEDICARE
SUPPLEMENTS
  MEDICARE
ADVANTAGE
  LIFE
INSURANCE
  DENTAL
PLANS
 

According to LIMRA, an international association of life insurance and financial planning companies, 40% of Americans have no life insurance, and half of those who do are underinsured. Of particular concern, one in three parents with children under 18 have no life insurance.

Why you may need life insurance.

“We’ve all been in a bad financial situation, and there aren’t many things worse,” says Kyle O’Dell, managing partner of O’Dell, Winkfield, Roseman and Shipp, a retirement income planning firm based in Denver. “Being broke is being broke, and that is not good. The way to look at life insurance is as income replacement.”

The aim should be to replace the insured’s income at a level of 10 to 15 times one’s annual salary, O’Dell says. So if you make $50,000, you should shoot for a policy of $500,000 to $750,000.

“You want to be sure that your spouse can finish raising the kids and can send them to college,” he says. “The way I would reference life insurance is that it’s like a love letter to your family if you pass away. ‘I cared about you when I was there, and I care just as much about you when I’m gone, and I want to make sure that you don’t struggle financially.’”

Why you don’t want to think about it.

Reasons for the lack of receptiveness toward life insurance range from feeling it’s too expensive to being overwhelmed by the options available to feeling that the payoff could be far in the future, so why worry now?

“We’re all living longer,” O’Dell says, “so I think people are thinking, ‘Why would I buy insurance in my 20s or 30s when I’m going to live another 50 or 60 years?’ Plus, families are on tight budgets, and they have to decide if they want to spend an extra $100 a month on insurance for something that they may not need for another 50 years.”

Do you really need it?

If someone is depending on you financially, then probably yes, but for others, no, according to J. Robert Hunter, director of insurance at Consumer Federation of America. “Only buy life insurance when you have a dependent to protect, usually a child."

What kind should you get?

There are two basic types. Term insurance covers you for a set period of time, such as 10 or 20 years. It's the more affordable type, however as you get older, if you renew your policy for another term, the price goes up. Whole insurance, also known as permanent insurance, lasts a lifetime — as long as you keep up with the premiums — and it has an investment vehicle attached. These policies tend to cost much more — and they sometimes come with more fees and high sales commissions  — however, the price usually stays the same as you get older.

Read More: Source

Posted 8:58 AM

Share |


No Comments


Post a Comment
Name
Required
E-Mail
Required (Not Displayed)
Comment
Required


All comments are moderated and stripped of HTML.
Submission Validation
Required
CAPTCHA
Change the CAPTCHA codeSpeak the CAPTCHA code
 
Enter the Validation Code from above.
NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive


View Mobile Version



 
Our Company Services Resources Contact Us More Help
Home
Who We Are
Our Carriers
Get A Quote
Customer Service
All Insurance Types
Our Newsletter
Refer a Friend
Insurance News
Send A Message
Our Location
Glossary
Frequently Asked Questions
GET SOCIAL WITH US Facebook Twitter LinkedIn Google+ YouTube
Serving, California, Nevada, Oregon & Washington | 888.803.0003 Powered by Insurance Website Builder

How Can We Help You?
or call us at
888.803.0003
Medicare Planning Medicare Part D Medi-Share Social Security Timing