Every family should take the time to look at their financial plan once in a while and make sure that their financial needs are being met. For example, part of setting up a sound financial plan includes making sure that you have the right life insurance for your family’s needs.
Only 50% of US adults actually have life insurance, and that’s a problem, because people both underestimate the financial impact of losing a spouse, as well as the cost to obtain and maintain life insurance. The following are some common questions about life insurance, but we encourage you to reach out to LTCR Pacific for more personalized information.
Q: Do Both Myself and My Spouse Need Life Insurance?
Answer: Yes, very much so, regardless of if a spouse is working or your incomes. The financial impact of losing a loved one is substantial, from the cost of the funeral, mourning time, less help with kids/home/work, and even reduced future income from social security. It’s important to make sure you are both financially protected in the event of unexpected loss.
Q: What Kind of Insurance Do We Need?
Answer: There are many different types of life insurance, so this is a question that requires a personalized answer from one of our experienced life insurance agents. With that in mind, you can typically choose from term life insurance and permanent insurance. Term life insurance is usually much less expensive, but expires after a set term (often 20 years, though individual plans vary). With permanent life insurance, the cost of the premium never changes and it never expires as long as you make your payments, but it may also be more expensive.
Within these types of insurance are other potential products, such as investment potential, tax deferred cash growth, and more. We will discuss these with you on our call.
Q: Should We Buy Separate or Joint Policies?
Answer: This is a great question, but also a very personal choice. Separate policies tend to be less expensive and more customizable, both of which offer advantages to the couple. But joint policies may allow for easier approval if a spouse has health issues. There are many benefits to each, so the eventual choice will be between you and what you discuss with your agent.
Q: Should We Both Get the Same Amount of Life Insurance?
Answer: If you want! It typically depends on your financial contributions, household contributions, the amount needed to pay off debts and support dependents, age, and more. Buying the same amount is perfectly reasonable in all situations, but some prefer to purchase different coverage levels in order to pay only the premium that they need.
Q: Why Choose LTCR Pacific?
Answer: We are a team of insurance agents that really cares about making sure you’re connected with the best policies for your financial needs. Not only do we offer life insurance, but we also have connections to over 600 affinity groups and colleges/universities that allow for great premium rates on long term care insurance as well.
If you’re in need of personal support for life insurance, reach out to LTCR Pacific, today.