Hello everyone, I hope you’re all doing well. On today’s DueNorth Insight, I’m going to talk about Life Insurance. I realize it’s not the most popular topic to talk about but it is a very important topic. And, so there’s many types of life insurance out there. We’ve got whole life insurance, universal life, and variable life and those types of products can accumulate a cash value and also offer a death benefit. However, those can be considerable more expensive than term insurance. And those types of products are not meant to replace your traditional retirement savings such as utilizing your 401(k) or an IRA.
One of the most common, and affordable, types of life insurance is term insurance. And that can come in many different lengths of time such as 10, 20 or 30 years and variable death benefits as well based on what your needs are. I do recommend that you get your own life insurance policy, I get asked many times, “Well I’ve got life insurance through my employer, why do I need my own life insurance policy?”
Well for starters, your life insurance policy through your employer is only good while you’re employed there. And many times that’s not enough coverage, they maybe only offer one or two times your salary. I also recommend that you buy life insurance while you’re young, and healthy. As you get older, the cost of life insurance becomes more and more expensive. People ask, “Well how much life insurance do I need?” A typical recommendation is 10 to 12 times your annual salary. It depends on your situation, your needs, and what you can afford.
One thing to remember is we cannot control, or predict, when our expiration date is up. But we can control the amount of death benefit our loved ones will receive when we’re gone. Some benefits of life insurance is the benefits are tax free, your family won’t have to worry about finances, life insurance can replace years and years of your lost income and give your family a financial cushion. It also gives them a sense of security during a very difficult time. Life insurance proceeds can be used to pay off debt, loans such as car loans, credit cards, home mortgage, and for those of you with young children it can be used to set up money for a college fund as well.
Now with all the options, and all the products out there, please give us a call at Priebe Wealth. We can help analyze your life insurance needs, and help you get set up with the proper coverage and the proper product for the protection of your family. And that wraps up today’s DueNorth Insight.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.