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Life Insurance 101

Life insurance is a necessity for your family’s security. Having a good life insurance policy in force is the best way to ensure your family will be provided for. It’s important for you to be prepared for your family’s sake in the event of your untimely death. This report will cover the following facts regarding life insurance: * There are important reasons why you may need life insurance. * You can shop around for the best life insurance companies. * To calculate how much life insurance you think you’ll need, see the section titled: “How Much Life Insurance You Should Obtain” for specifics on how to do it. * Learn about the various types of insurance and when a particular type might best fit your needs. * Your life insurance can be used to help you financially in the long run. * In the event you’re listed as a beneficiary and the person on the policy dies, you have a choice about how you receive your life insurance payouts.

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Life Insurance 101

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  1. LIFE INSURANCE 101

  2. Why You May Need Life Insurance • Having a life insurance policy provides you with peace of mind. • You’ll have money available for your surviving spouse should they be left alone to take care of the family. • Ensure your family will continue to live as well as possible after your untimely death.

  3. Shopping for Life Insurance "Fred has a pressing need for life insurance to ensure that Wilma and Pebbles could maintain their standard of living if he were no longer able to provide for them." - David Woods

  4. Shopping for Life Insurance

  5. How Much to Obtain "Fun is like life insurance, the older you get, the more it costs." - Kin Hubbard

  6. How Much Life Insurance to Obtain • How much life insurance do you need? • Look at some of the following websites: • Smart Money, Yahoo Finance and Cash Money Life • The next slide demonstrates a simplified method that provides a conservative estimate of the amount of life insurance you need. • The following example assumes you've passed away and left a spouse who works and will be able to care for him/herself through working, once your 10-year-old child is raised to adulthood.

  7. Calculating Total Funds

  8. Figuring Total Assets • Assets can reduce your overall life insurance needs: • Subtract your social security payments • Subtract your savings or investments • Keep in mind that as you age, life insurance needs are going to change. You need to constantly address your life insurance needs to ensure that they are still being met.

  9. Types of Life Insurance "I'd want to be sure that I've got adequate insurance for the sake of my loved ones." - Sheryl Garrett

  10. Term Life Insurance

  11. Why Buy Term Life Insurance • In the event that you're already stretching your dollars, term life insurance tends to be the least expensive. • It's the simplest form of insurance, which makes it no-fuss. • Finally, you have some choices to make within the range of term life insurance vehicles, which allows you to tailor the policy to your needs (length of the term, convertibility, and return of premiums).

  12. Whole Life Insurance

  13. Why Buy Whole Life Insurance • If you want life insurance plus a small investment to build over time, consider purchasing whole life insurance. • Whole life insurance provides you with the possibility of borrowing against the accumulated value, in the event you need funds in an emergency.

  14. Universal Life Insurance

  15. Why Buy Universal Life Insurance • Universal life insurance shares similarities to whole life insurance, but it gives you a wider choice in your premiums and investment options. • If you want the most flexibility that you can get from your life insurance policy, then universal life insurance is the choice for you.

  16. Variable Life Insurance

  17. Why Buy Variable Life Insurance • Most of your premium dollars for variable life insurance are applied toward the investment component of the insurance. This type of policy focuses largely on the investment aspect. • For those who are well versed in watching the stock market, a variable life insurance policy may be ideal. • You have the opportunity to make some real cash on a variable life insurance policy.

  18. Survivorship Life Insurance

  19. Why Buy Survivorship Life Insurance • Prevent your heirs from losing up to half of your estate to the federal government if you have over $1 million. • If you plan to leave money for charitable purposes, this type of insurance ensures there will be enough of your money left to do so through the trust you established. • A third reason to get survivorship life insurance is if you have a special needs child that will survive you who will need to be taken care of.

  20. Using your Life Insurance "It's not an insurance product, but a safety-net package." - Joe Thompson

  21. Life Insurance as a Financial Tool

  22. Life Insurance as a Financial Tool

  23. Receiving a Pay-Out "Batman doesn't have anyone who depends on him financially and therefore probably doesn't need life insurance." - David Woods

  24. Your Choices • If listed as a beneficiary, you will be paid out the amount of the policy. There are several ways that you might receive proceeds from a life insurance policy.

  25. Your Choices

  26. Annuity Payment Options • Monthly Income Payments • Period Certain Payments • Interest Only Payments • Joint and Last Survivor Income Payments • Specified Amount Payments

  27. A Gift of Love With life insurance, you could still send your children to college and help support your spouse even if death takes you at an early age. Purchasing life insurance is a gift of love to those you leave behind. So even though you can’t be there, at least you can relieve your loved ones’ suffering somewhat by providing for their financial security. Contact your agent today to find the right policy for you and your loved ones.

  28. We hope you enjoyed your Special Report! Curtis Roese is an experienced professional with extensive experience in personal finance and small business matters. Curtis writes and publishes articles, courses, guides and special reports on his personal finance blog. Common Cents Wisdom is a website with hundreds of informative articles, special reports, resources to assist you with all of your financial concerns and a free monthly newsletter. Sign up to receive your free eBook "Common Cents" and get started today on the road to financial freedom!

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