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Insurance

Life Insurance:  It's Not Only For You

Life insurance products are based on statistics.  There are many life insurance-type products which help people manage their risk of the unexpected, including:

 Life Insurance (financial protection against death)

  • Disability Insurance (financial protection against disability: injury or illness)
  • Long Term Care Insurance (financial protection against qualified ailments expecting to last 90 days or longer)
  • Annuities (financial protection against outliving your income

 There are many variations and numerous uses for the aforementioned types of insurance.  They help us manage life’s risks.  Despite the fact that you and many people you know have life insurance, too many people misunderstand it.  We don’t buy what we don’t understand.  That’s led to families being underinsured.

 Only 44% of US households have individual life insurance.

  • The average amount of coverage would only pay for 3.4 years of household expenses.
  • 30% have no life insurance.

Source:  Life Insurance Market Research Association (LIMRA)

https://www.limra.com/Posts/PR/News_Releases/LIMRA___Nearly_5_Million_More_U_S__Households_Have_Life_Insurance_Coverage.aspx

Advisors May Get You A Better Deal

Life insurance premiums and commissions are regulated by your state.  Whether you purchase directly or through an advisor/broker, you’ll pay the same amount.  However, an advisor/broker may help you ask questions you may not know to ask and may help you make a more informed purchase.  

Why should you care?  Because our advisors have access to major distributors of life insurance products.  If you seek more than simple term insurance, an advisor may be a big advantage to helping you shop for the solution that fits your needs best.

How might we help you?

We continuously review all life insurance products and sell only “A-rated” or better products to help ensure you’re covered by companies with the financial strength you seek.

  • No one is in perfect health—especially as we age. We can help recommend a life insurance company which understands your health condition better than other life insurance companies so that it may be more likely to offer you coverage rather than decline your application.  (You’d be surprised how many life insurance applications are accepted today despite the individual’s experience with cancer, diabetes, cardio-vascular, and other ailments.)
  • Life insurance multi-tasks today, just like you. We can show you ways to use life insurance to improve your life, not only to benefit others after a death.

Because advisors are routinely in the life insurance marketplace,

they may help you . . . 

  • Get Coverage
  • Save money
  • Design a better solution than you might consider

So, knowing you'll pay the same price if you purchase on your own or with the help of an advisor, why take a risk trying to manage your risk?

Life Insurance:  It's Not A Yes/No Checkbox

Those who think they’re covered because they have life insurance through their company should know that the IRS only offers tax benefits to employers for up to $50,000 of life insurance coverage per employee.

Guess what?  That’s often the limit to the amount of coverage each employee is offered by his or her employer.  (Is that how much coverage you have through your employer?)  What would your family do without you after that amount ran out?

Source:  IRS - https://www.irs.gov/government-entities/federal-state-local-governments/group-term-life-insurance

Costs Less Than You Think

Life insurance is less expensive than you think.  You can explore our online term life insurance quote engine here.

For permanent life insurance design/review and customized risk management strategies, please contact us.

Remember One Thing

Your life insurance is for those you love and leave, not necessarily for you.  We can help you calculate how much they may need, if any, with a complimentary consultation.

The List of Benefits?  It's Long.

With approximately 87% of all medical records in the US now digitized the days of waiting months to apply for life insurance are coming to an end.  New features, more efficient policies, and shorter applications make life insurance an easier and less costly option than ever.

Source:  CDC - https://www.cdc.gov/nchs/fastats/electronic-medical-records.htm

Imagine the possibly catastrophic financial situation people face without life insurance.  It can be a mess.  But it's avoidable.  An advisor can help you . . .

  • Make a more informed purchasing decision (again, you’ll pay the same amount with or without an advisor’s assistance, so why not use the advantage of an advisor’s knowledge and experience?)
  • Identify features in products which may be appealing to you which you may not find yourself.
  • Steer you to a life insurance company that may understand your medical condition better than another company.  That may enhance your chance of getting covered if you have cancer, diabetes, cardio-vascular, or other conditions.
  • Design a policy to perform as you intend more effectively.
  • Help you avoid mistakes.
  • Ask questions you might not know to ask.
  • Explain how different policies and options work.
  • Suggest strategies that help defer income tax events, rather than trigger them.
  • A good advisor will be there to help you manage your policy for years. Permanent policies are often NOT “set-it-and-forget-it” purchases, they need to be managed like any other asset.

 Does your advisor do this for you?  We do.

Schedule a complimentary consultation today.

New Options Using Your Old Policy

If you purchased a permanent (cash value) type of life insurance policy years ago, your needs may have changed but not gone away.  What to do?  You may have new options you haven’t considered.

Permanent life insurance policies are subject to changes in interest rates, market activity, and the assumptions which were made when you purchased the policy.  The means the more time has elapsed, the more important it is to review your policy to see if it will last as long as you intended it to last.  It’s also a good idea to update your beneficiaries and maybe add secondary (aka contingent) beneficiaries.  Remember, life insurance policies are designed to last for decades and the people you included in the policy years ago may not be the people you would choose today.

You may also have new options you didn’t consider.  Life insurance features have changed a lot in last few years.  Tax laws also permit you to use the cash value in your current policy to purchase another type of life insurance product (another life insurance policy, an annuity, or a long term care policy) without triggering a taxable event.  This may be an opportunity to reset your needs and get a better deal.  It’s worth a complimentary conversation with an advisor.

If your job is nearly done protecting your young family for the last few decades, your new job may be to revise your insurance so can protect you (and your spouse) for the next few decades.

ask@sfsfirm.com