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By Dan Schulte, Vice President and Manager, Annuities and Insurance

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September is Life Insurance Awareness Month which is a month-long public awareness campaign sponsored by the nonprofit organization Life Happens.

If the income you earn would suddenly stop, due to death, could your family continue to meet their financial obligations such as paying the rent or mortgage, paying bills, daily living expenses, or even sending a child to college? If not, having a life insurance planning discussion with your financial advisor is imperative. While the planning discussion surrounding death is often uncomfortable, it is necessary to ensure you have the proper amount of life insurance for your family to maintain their current and future lifestyle should you die. A life insurance policy provides an income-tax free lump sum death benefit to your family in case you die early or unexpectedly, which can be used to replace lost income and fund other needs.

According to a recent* study 1 in 3 households would have immediate trouble paying living expenses if the primary wage earner died.  The study also found that 40% of individuals haven’t bought life insurance because they are unsure of the amount or type of coverage to buy.

Your life insurance needs are unique, and throughout your lifespan, those needs can change based on your income earned and family situation. As a result, changes may need to be made to the amount and type of insurance owned. As a first step in reviewing insurance needs, gather your current life insurance policy statements for an evaluation by your advisor. Your Benjamin F. Edwards & Co. financial advisor can help you take an inventory of your existing coverage and determine if you have a surplus or shortage of coverage by conducting Life Insurance Needs Analysis. This analysis can compare income needs to income sources, and can determine how much additional insurance is needed, to protect any shortfall.

Don’t let your family suffer financially should the unexpected happen. We can review your situation to ensure your family will be protected should your income be halted due to an unforeseen death.

*2016 Insurance Barometer Study by Life Happens and LIMRA

Sample Guaranteed Annual Term Life Insurance Premiums

40-Year-Old Preferred NS/$1,000,000 Death Benefit

Term Period Male Female
10-Year $461 $393
15-Year $593 $505
20-Year $761 $629
30-Year $1321 $1060

 
Note: Premiums are estimates from Protective Life Insurance Company.  Rates will vary by carrier and underwriting.  All products are not available in all states.

September 18, 2019 |