Why you don't need Life Insurance

Why you don't need Life Insurance

Mike spends a few minutes talking about why you don't need Life Insurance

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http://katch.me/Mike__Sheehan/v/cce2ff77-e849-3781-b63f-7eedd8df1165

Why do you need life insurance - but how much do I need??

Why do you need life insurance

Importance of life insurance

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One of the most common questions asked is how much life insurance should I purchase and why do you need life insurance. While there is no set answer, each individual and family needs to look at their exact needs and situation. Here are some broad factors to consider.

Look at your current and future needs. If you have a family or a spouse that is largely dependent on your wages to live, you might want to make sure that you have a life insurance that will cover your family and spouse for 20 years or more. Some people usually go with the philosophy that you are better off over insured, then not having enough insurance as a reason of Why do you need life insurance

Some life insurance agents state that at minimum, you should at least have a policy of 15K to cover burial and all final expenses. In addition, some financial planners advise you to purchase life insurance by multiplying your salary, for instance, purchasing 5 times or 10 times the amount of your salary.

Other life insurance agents, advise you to look at your family or spouses expenses for the amount of years that you want to cover them and figure out how much money they will need to live comfortably for the reason of Why do you need life insurance. Many life insurance agents have special formulas that can figure out how much insurance you need for your age and level of coverage you want to provide your spouse and children.

Many people want to make sure that their family is very comfortable in the event of a death. For instance, a policy might take into consideration the cost of a home, car loans, maintenance of assets and education costs for children. Usually the more dependents, the more insurance is necessary.

Some consumers that are buying life insurance don't necessarily purchase it to care for dependents, but to cover estate taxes or to give an inheritance to their heirs. Usually these types of policy holders are already well off or no longer have bread winning responsibilities that make it necessary to care for small children or a spouse.

Lastly, if you are single, do not have any dependents and have an adequate amount of savings to take care of any final expenses such as funeral costs and taxes, you might decide you do not need to purchase life insurance at all.

Why do you need life insurance

One thing is for certain, make sure you put lots of thought into the amount of life insurance you do purchase and talk to an accountant or insurance agent to learn more about how much life insurance, you personally should purchase.

For more click here  Life insurance - Because you Care

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6 steps that will help you decide how much life insurance you need

6 steps that will help you decide how much life insurance you need

Below you will see how to assess the amount of life insurance one needs, and what products should be covering those needs. This talk is intended only to give a general, high-level overview of a life insurance needs assessment. (And by all means, if you disagree with this self-taught theory, point out my mistakes!) 

6 steps that will help you decide how much life insurance you need 1. Identify all of the items that an individual needs life insurance to cover:

• Burial/cremation expenses
• Leaving a legacy to loved ones
• Leaving a legacy to a charitable organization
• Replacing the income of a spouse due to untimely death
• Covering children’s education expenses
• Paying-off credit card debt, student loans, mortgages and other debts
• Ensuring the continuation of a business due to untimely death 
• Other financial commitments — insert your obligations here: ______________

2. Identify the dollar amounts that should be allocated to each item above. 

3. Write down the amount of life insurance needed for each line item on your list, so that you can tally-up the total amount of life insurance that should be purchased:

• You may allocate $15,000 plus a cost-of-living adjustment (COLA) for burial expenses (Tip: COLAs are important because today’s dollar will be worth far less than 100 pennies 10 years from now)
• You might want to leave a total of $250,000 to your loved ones
• Your desire may be to leave $50,000 to your favorite charity.
• If you are like the typical American, you’ll want to put aside $43,000 annually, along with a COLA for the number of years from your current age until your planned retirement age, to replace your income (i.e. planned retirement age is 67 and current age is 37, so multiply $43,000 plus COLA times 30). This will help to ensure that your family can continue with their current standard of living, despite a possible untimely death.
• Continue this exercise until you have calculated the amount of life insurance necessary for every item on the list

4. Review each commitment on the list and identify which of two camps the commitment belongs in: temporary or permanent. Temporary commitments will eventually go away (i.e. a mortgage loan is paid-off after 30 years) and permanent obligations will always exist (i.e. burial expenses).

5. Sum the total amount of life insurance needed for the temporary commitments — this is the amount of term life insurance that you should purchase.

• Term life insurance can generally be purchased as a stand-alone policy in durations of one, 10, 20, and 30-year terms; make sure the duration of the term policy purchased matches the duration of the temporary commitments from above.
• Term life insurance can also be purchased as an optional rider on a cash value life insurance policy

6. Sum the total amount of life insurance needed for the permanent commitments. This is the amount of permanent cash value life insurance that you should purchase.

6 steps that will help you decide how much life insurance you need

There are several types of permanent cash value life insurance, with the two primary types being whole life and universal life

• In general, whole life is more costly, but has stronger guaranteed cash values; it is also very structured and relatively inflexible in terms of changing coverage amounts and premium payments.
• In comparison, universal life (UL) is less costly and more flexible; there are several varieties of universal life, including fixed UL,indexed UL, and variable UL

Now do your homework.  None of us are getting out of here alive.  I can't guarantee much but I can guarantee is that those families with the right amount of life insurance will be far better off then those who do not plan.

6 steps that will help you decide how much life insurance you need

Do you have a plan?  What is your plan?  Life insurance ~~~ Because you care.  Click here.

Why do I need life Insurance after 50?

Why do I need life Insurance after 50?

Why do I need life Insurance after 50?

Watch this video

Do you have a plan?  What is you plan?  Click here

Life insurance - Because you care.

Why do you need life insurance ~~ Ignorance is not an excuse

Why do you need life insurance

Life Insurance 101

Ignorance is not an excuse.  Educate yourself on the values of life insurance.  Do you know that the percentage of families that are under insured for life insurance is at an all time high.  Why do you need life insurance?  There are many reasons but none of them remove your obligations to provide for your family for when you are no longer here.

Watch the video below - educate yourself

Why do you need life insurance

What is your plan?  Do you have a plan?

click here - Because you care

Do you need life insurance ~~ what does your wife think...

Do you need life insurance

"I have to talk to my wife"

This is another statement that I hear quite often when talking to the husband about life insurance.

Sales 101 tells you to have both spouses at the appointment.  I agree with that but sometimes that is not possible.  

So I stopped to think about that and have come to this conclusion - the guy just doesn't want to pay the money to protect his wife and family.  With that being said, it could be about the money.  Maybe things are tight but if that were true and if the guy truly loved his family and wanted to make sure they were protected he would ask to see a lower premium - to get something - verse just putting it off.   Do you need life insurance

They've looked me in the eye and said, "I'm going to talk to her today and I'll get back to you in a couple of days."  In over 25 years that has never happened. I have never gotten that phone call.

I mentioned this to call out the guys who have not provided for their family when they die. Do you need life insurance

                                             


I have over $1,000,000 dollars of life insurance - so I walk the talk.

Do you need life insurance

So ask yourself - Do I have a plan?  What is your plan?

To find out your options - click here - Because you care.

Why do you need life insurance

Why do you need life insurance

Happy Thanksgiving

Why Buy Life Insurance - Click below

Why do you need life insurance

What is your plan?  Do you have a plan?  Click here - Because you care.

Why do you need life insurance

What insurance do I need to Buy?

What insurance do I need to Buy?

How Much Term Life Insurance Do You Need to Buy?

How much life insurance coverage I need to buy was something that really wasn’t important to me until I got married.

My first policy was a $100,000 Universal life insurance policy and I thought that was plenty.  It was not until we had our first daughter, at age 26, that I quickly realized that was not nearly enough.

After her birth, I decided to increase it substantially.  With us in the process of buying our first home and a second daughter on the way, I’m left wondering even with that increase if I really have bought enough life insurance.

Update: We now have five children and I have increased the amount of life insurance, at age 57, I have on myself and on my wife.  Check the end of the post to find what I’ve increased my term life insurance to and my rationale.  What insurance do I need to Buy?

I know many struggle with this same decision so I wanted to shed some light on how much life insurance is enough.

First things first, life insurance is for one purpose: income replacement.  While there are times where life insurance can aid in more complex estate planning strategies, a majority of the time it’s purchased to take care of your family once you’re gone.  What insurance do I need to Buy?


My reasoning for purchasing life insurance is that I want to leave my wife and kids without any debt and the ability for my wife to not worry about finances in the event of my unexpected passing.

I now have a $600,000 - 20 year level term policy and $250,000 of whole life insurance.  My wife has a $200,000 Universal life policy

What insurance do I need to Buy?

I have peace of mind that my family is set – if I didn’t come home.

What is your plan?  Do you have a plan?  Click here – because you care.

What insurance do I need to Buy?