Figuring out Life Is Nearly Impossible, Life Insurance Isn’t As Hard.
Thousands of years ago, philosophers were asking one burning question: what is life? Today, we ask a similar question, but with one twist: what is life insurance? We are here to help you answer that question.
Basic definition of life insurance: cash that goes towards your beneficiaries in the event of your death
What does it generally go towards: burial and final expenses, replaces income, creates generational wealth, covers related taxes and pays off mortgage
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Factors to consider
Risk Classifications:
Preferred Plus – the healthiest category.
Includes: height and weight must both be normal, normal lab results, no chronic illnesses, no immediate family members who died from cancer or heart disease before 60.
Preferred — excellent health, you fall into the category above but with a few caveats
Caveats: if you are slightly overweight/being treated for blood pressure or cholesterol.
Preferred smoker — you fall into the preferred plus category, but you have smoked tobacco this year
Standard Plus — your health is slightly above average
Standard — you have average health, where most people fall
Includes: Being overweight, a normal life expectancy, several minor health conditions, family members who died from cancer or heart disease before age 60, you’re probably in this category, too.
Standard smoker — your fall into the standard category but you smoke
Substandard — people who are in poor health
Includes: obese people and people with serious health issues.
Age
35 years old or younger – Less than $30 per month.
40 years old – $30 – $40 per month.
45 years old – $50 per month.
50 years old – $75 per month.
55 years old – $120 per month.
60 years old – $200 per month.
65 years old – $350 per month.
General Coverage to Consider
Types of Insurance
Permanent/Whole Life: coverage for your whole life, generally more expensive
For: empty nesters and retired people
Term: recommended, policies for years at a time up to 30 years
For: single people, single parents, married people, married people with small kids
Variable: a permanent life insurance policy with a cash-value investment component that act similar to a mutual fund, but it is only available within a variable life insurance policy
Universal: a permanent life insurance with an investment savings element and low premiums that are similar to those of term life insurance
Do I need Life Insurance?
Probably, but especially if you…
Are the breadwinner
Are a single parent
Are a small business owner
Are a retired or older
Are single
Landing massage: You should absolutely invest into Life insurance and at minimum YOU SHOULD HAVE ENOUGH TO PAY FOR YOUR OWN FUNERAL. Rule of thumb: starting with coverage equal to your annual income multiplied by 10.
Now that you have a basic understanding, connect with Mark and Eric. They can answer your burning questions even further!
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