Although most people “cringe” when they hear the words Life Insurance, it is
the foundation of a financial castle.
A life policy protects your family from financial ruin. Also, in today’s world of
financial needs both husband and wife are wage earners and must be covered.
Of course the next step is to analyze your life style and financial “musts“,
wants and desires. Then we can examine the types of policies.
After our research we can determine what type of policy and coverage is best.
Most people are shocked when they see the results of our research.
Life Insurance can be used in several areas. A few of them are : Buy - Sell
Agreements, Estate Protection, Key Man for companies and corporations,
Individual Financial Protection.
INDIVIDUALS usually have specific financial needs in two stages of life. The
first stage is from ages 21 to 50. This is when the family must be protected.
The second stage begins when you finally got your children out of the house
about age 50. We now must think about retirement. We are then working with
a different set of desires and “financial musts”.
Stage One - Between the ages of 21 and 50 are main concern is the family.
We need to simply look at what your family would lose if you were not above
ground (an extremely “cold” scenario but a financial reality). We need to provide
dollars for the mortgage, living expenses, education, etc.
Stage Two - You have made a half-century and the house just has you and
your better half. Hopefully the kids are gone so our financial “musts” have
changed. You have climbed back to the top of the list. We still have the
mortgage and a few monthly expenses but we now MUST plan for retirement.
Our plan still should have financial protection but should be expanded.
The term policy is about to expire. The new policy needs to earn retirement dollars
Investment money should be placed in less risky venues. Long Term Care
should be addressed.
The following is a description of Life Insurance policies :
Whole Life - This policy also known as Ordinary Life affords financial
protection plus builds a “cash value”.
Term Life - This policy provides protection only. It is less expensive but do
not let that be the only reason you purchase a term policy. Also, a number of
“riders” maybe added to apply to a specific need: mortgages, disability, etc.
Universal Life - This type of policy has two parts. The first part is similar to
a Term Life policy and the second part is investments. The
premiums are divided giving you protection plus increasing funds with
conservative investments. Many people use Universal Life to protect
estates, businesses, or “take out” a loan.
We hope this helps you understand Life Insurance. Again there is no mystery.
We just need to talk and examine your financial position. We will then know
what is best for you and your family.