Hello and Happy Life Insurance Awareness Month!

We have life products! Life insurance protects your family's income, lifestyle and unpaid labor (yes, even stay at home parents needs life insurance!). We're happy to talk through your family's needs, products, costs, and processes. Need a place to start - reach out!

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As an introvert and exhausted mother of two, I have moments of spontaneity where I go off on solo adventures. This past May, I booked a last minute trip to Red Rocks to see my favorite band... by myself. As I headed out the door my husband looked at me and said, "please don't do anything stupid. If something happens to you, I'll have to move in with my parents".  Probably true either way, but I shrugged and said, "that's what life insurance is for".  While life insurance won't fill all the gaps a person leaves behind when the unthinkable happens, it can help your family continue to live the same lifestyle and ease the burden of life without you. 

As we mark Life Insurance Awareness Month this September, I wanted to share a quick refresher on the importance of life insurance and how it can benefit you and your loved ones. Here are some quick FAQs:

1. What are the different types of life insurance?

There are primarily two types of life insurance: term life and permanent life. Term life insurance provides coverage for a specific period (e.g., 10, 20, or 30 years). In contrast, permanent life insurance (such as whole or universal life) offers lifelong coverage and includes a cash value component.

2. How much coverage do I need?

The coverage you need depends on several factors, including your income, debts, living expenses, and future financial goals.  Individual needs vary greatly and your needs will likely vary based on your stage of life.

3. How much will it cost?

Life insurance costs vary based on several factors, including age, gender, health, lifestyle, occupation, and the amount and type of coverage you choose. Generally, younger and healthier individuals pay lower premiums. For example, a healthy 30-year-old might pay around $20-$30 per month for a 30-year term policy with a $500,000 death benefit. 

Due to the lifelong coverage and cash value component, premiums for permanent life insurance are typically higher than those for term life policies.

4. What if I need more life insurance later? Can I have multiple policies?

You can  purchase additional policies if your needs increase, so long as your still qualify based on health and lifestyle. This approach, known as "stacking" or "laddering," allows you to have different policies that can cover various financial needs at different times. You can also consider a policy with a conversion option, enabling you to convert term life insurance to permanent life insurance without undergoing a new medical exam.

5. When should you not buy life insurance?

You might not need life insurance if no one relies on your income. Additionally, life insurance may be less critical if you have sufficient savings and assets to cover debts and end-of-life expenses. Some life products, such as universal or whole life, are more financial based and I generally have clients refer to their financial planners as to whether or not these are appropriate for their financial goals. 

6. How can life insurance benefit my family?

Life insurance can provide financial security for your family in the event of your untimely death. The death benefit can cover funeral expenses, pay off debts, replace lost income, fund education for your children, and ensure your loved ones maintain their standard of living.

7. Does the homemaker/stay at home parent need life insurance?

Yes!! Stay at home parents tend to complete several hours of "unpaid" labor per day. While they're not making money, replacing the labor they do (childcare, education, meal planning and preparation,  housekeeping, transportation) can be costly. It' s important to consider the costs you may incur if this person passes.

8. What should I consider when naming a beneficiary?

When naming a beneficiary, consider who will be most impacted financially by your passing. It's crucial to update your beneficiaries regularly, especially after major life events such as marriage, divorce, or the birth of a child. Consider naming contingent beneficiaries in case the primary beneficiary cannot receive the benefit. When it comes to kids, we recommend naming a guardian or trust as opposed to a child. Naming a minor can push the proceeds to probate. 

We hope you found this information helpful. If you have any questions, want to schedule a time to meet and discuss further, or want me to put together a quote, please reply to this email or give us a call at 785-370-0722