That depends on a lot of factors, but mostly what their trying to accomplish. And how much they understand about how life insurance works. It might be for a short term fix, business purposes, income replacement, estate taxes, tax free income, guarantees, retirement, loans, living benefits, etc., or just a death benefit. Call me if you have further questions xxx-xxx-xxxx. Joe
Life insurance, like the rest of wealth/financial planning, is very specific and unique to each person/family. Yes, there are some general guidelines, but you need to seek advice from a knowledgeable professional that is willing to find out what your specific needs and goals are before they recommend a solution. Most agents just sell products and disappear. Properly structured life insurance can be a integral part of a strong financial system for current saving, spending, and future income streams throughout life in addition to the death benefits. It's called life insurance not death insurance for a reason.
I do offer term insurance as it is affordable for a larger face value policy. Which will replace their income for their family. Since life insurance is income replacement, not just meant to cover the funeral. Our term cost doesn't increase throughout the duration of the term. Plus there are many options available at the end of term without having to prove medical (that's a huge deal). To be able to still have coverage in the later years no matter what at a low cost.
I'm not a fan of whole life as the rate of insurance increases. Meanwhile the client is always paying the same. If the cost goes above their monthly amount, it's catastrophic! It'll eat away their cash value. Plus you rarely get both the investment and insurance.
If your young and starting a family get a whole life policy to cover your final expenses and a 20 year term to cover your debt. These policies along with your employer’s group life insurance should cover you until you retire at age 65-70. At this age term policies are very expensive. I’d just keep my whole life and the kids can sell my assets to pay off any debt and take a nice cruise around the Greek Isles to scatter my ashes.
You purchase what you can afford. The only good life insurance policy is one that is in force when it is needed. So it must be tailored to fit your individual need and be affordable.
There is not set answer for everyone. It is personal for each individual or business entity. We set down with each party and have a discussion on what they are trying to achieve, for how long, with what budget, and with what particulars. It is a customized solution in every case- although the industry tries to give ballpark figures to start a discussion based upon historical data.
Determine the purpose and what you are protecting..is it for taking care of the families debts and future needs (children's education)? It may be for investment/estate protection. I love IUL's, they are basically term with an investment for future growth added to the policy. Meet with a financial atoned agent wo can evaluate your situation and decide what your current and future needs demand. Also life situations may change in the future. The old rule was One Years Income, mortgage obligation, and period covering a two year loss of income...age of client and family situation should also be considered.
Answers (91-100)
Life insurance, like the rest of wealth/financial planning, is very specific and unique to each person/family. Yes, there are some general guidelines, but you need to seek advice from a knowledgeable professional that is willing to find out what your specific needs and goals are before they recommend a solution. Most agents just sell products and disappear. Properly structured life insurance can be a integral part of a strong financial system for current saving, spending, and future income streams throughout life in addition to the death benefits. It's called life insurance not death insurance for a reason.
I do offer term insurance as it is affordable for a larger face value policy. Which will replace their income for their family. Since life insurance is income replacement, not just meant to cover the funeral. Our term cost doesn't increase throughout the duration of the term. Plus there are many options available at the end of term without having to prove medical (that's a huge deal). To be able to still have coverage in the later years no matter what at a low cost.
I'm not a fan of whole life as the rate of insurance increases. Meanwhile the client is always paying the same. If the cost goes above their monthly amount, it's catastrophic! It'll eat away their cash value. Plus you rarely get both the investment and insurance.
Buy term and invest!
If your young and starting a family get a whole life policy to cover your final expenses and a 20 year term to cover your debt. These policies along with your employer’s group life insurance should cover you until you retire at age 65-70. At this age term policies are very expensive. I’d just keep my whole life and the kids can sell my assets to pay off any debt and take a nice cruise around the Greek Isles to scatter my ashes.
Mr. Jones, the answers to your question have been answered by many fellow insurance professionals. There is not much to add.
You purchase what you can afford. The only good life insurance policy is one that is in force when it is needed. So it must be tailored to fit your individual need and be affordable.
That is a question that is impossible to answer without knowing more information.
There is not set answer for everyone. It is personal for each individual or business entity. We set down with each party and have a discussion on what they are trying to achieve, for how long, with what budget, and with what particulars. It is a customized solution in every case- although the industry tries to give ballpark figures to start a discussion based upon historical data.
Determine the purpose and what you are protecting..is it for taking care of the families debts and future needs (children's education)? It may be for investment/estate protection. I love IUL's, they are basically term with an investment for future growth added to the policy. Meet with a financial atoned agent wo can evaluate your situation and decide what your current and future needs demand. Also life situations may change in the future. The old rule was One Years Income, mortgage obligation, and period covering a two year loss of income...age of client and family situation should also be considered.
It depends on the person's human life value to others.