Life Insurance

Life Insurance

Achieve the peace of mind that comes with knowing your family is protected

Life insurance is a crucial step in planning the future for you and your family. It can fulfill promises and obligations to your loved ones while providing you with the peace of mind that comes with knowing your family will be provided for.

The death benefit is income-tax free and can be used to cover funeral and estate tax expenses, repay debt, provide education, or any other expenses your survivors may incur.

Life insurance may also be used to help ensure that a family business will pass to your intended survivor. There are also benefits to certain types of life insurance plans that can be used during your lifetime.

Contact us today for more information about Life Insurance or fill out our online quote form.

Frequently Asked Questions

Q: How much life insurance do I need?

A: Rough “rules of thumb” suggest an amount of life insurance equal to 6 to 8 times annual earnings. However, many factors should be taken into account in determining a more precise estimate of the amount of life insurance needed.
Important factors include:

  • Income sources (and amounts) other than salary/earnings.
  • Whether or not the individual is married and, if so, what is the spouse’s earning capacity.
  • The number of individuals who are financially dependent on the insured.
  • The amount of death benefits payable from Social Security and from an employer sponsored life insurance plan.
  • Whether any special life insurance needs exist (e.g., mortgage repayment, education fund, estate planning need), etc.

Contact us for a precise calculation of how much life insurance is needed for your individual situation.

Q: What about purchasing life insurance on a spouse and children?

A: In certain circumstances, it may be advisable to purchase life insurance on children; generally, however, such purchases should not be made in lieu of purchasing appropriate amounts of life insurance on the family breadwinner(s). It is of utmost importance that the income earning capacity of the primary breadwinner be fully protected, if possible, through the purchase of the required amount of life insurance before contemplating the purchase of life insurance on children or on a non-wage earning spouse. In a dual-earning household, it is important to protect the income earning capacity of both spouses. Life insurance on a non-wage earning spouse is often recommended for the purpose of paying for household services lost at this individual’s death.

Q: What is the difference between term life insurance and whole life insurance, and which product is right for me?

A: Although a difficult question–one whose answer will vary depending on circumstances–several principles should be followed in addressing this issue. It must first be recognized that in any life insurance purchasing decision, there are at least two basic questions that must be answered: “How much life insurance should I buy?” and “What type of life insurance policy should I buy?” The question contained in (1) involves an “insurance” decision and the question contained in (2) requires a “financial” decision. The “insurance” question should always be resolved first. For example, the amount of life insurance that you need may be so large that the only way in which this needed amount of insurance can be afforded is through the purchase of term insurance with its lower premium.

If your ability (and willingness) to pay life insurance premiums is such that you can afford the desired amount of life insurance under either type of policy, it is then appropriate to consider the “financial” decision–which type of policy to buy. Important factors affecting the “financial” decision include your income tax bracket, whether the need for life insurance is short-term or long-term (e.g., 20 years or longer), and the rate of return on alternative investments possessing similar risks.