Do You Have Term Life Insurance…???

Do You Have Term Life Insurance…???I guess the more important question is really the second one.  That is, do you really love your family?  Do you care enough about their future to provide for them if you are no longer alive?  How difficult will it be for your children to chase their dreams, attend college, get married or start a business if you leave them nothing but bills and debt?  It used to be that most folks wanted a better life for their kids.  It used to be that most folks didn’t want their children to struggle like they did.

Our office offers new clients a comprehensive FREE financial review.  This includes tax planning, retirement planning & insurance planning for individuals and business owners.  It simply amazes me to see just how many people who are married with small children come into our office and try to explain why they own no life insurance.  This is especially disturbing when we know that term life insurance rates are lower than any other time in history.  According to a recent 2015 study conducted by LIMRA[1], 40% of all U.S. households have no life insurance.

Most insurance agents and financial consultants understand why people do not want to buy permanent life insurance.  You may have heard of the two most popular versions of these products – Whole Life and Universal Life.    The answer is simple.  These products are more expensive.  If people cannot afford the higher premiums of cash value life insurance, they cannot afford the higher premiums of cash value life insurance.  Having said that, term life insurance equally protects your family in case of an untimely death.

 

A word to the wise, your family will not care whether you own Whole Life or Term Life insurance if you die.  The death benefit is triple tax-free to your beneficiaries regardless.  The death benefit is payable due to accident or illness regardless.  The death benefit will bypass probate regardless.  The death benefit will be available immediately regardless.  Having personally delivered several death claims in my career, I must tell you that there is a huge difference between walking into a widow’s home with a cake or a check for a million dollars.

 

The chart below shows a sample of just how inexpensive 20 Year Guaranteed Term Life rates are currently. 

 

These rates assume the male insured is issued Preferred, Non-Smoking by an A rated or better carrier:

AGE

DEATH BENEFIT

MONTHLY PREMIUM

35

$1,000,000.00

$53.72

40

$1,000,000.00

$73.85

45

$1,000,000.00

$118.12

50

$1,000,000.00

$181.56

55

$1,000,000.00

$293.04

 

These rates assume the female insured is issued Preferred, Non-Smoking by an A rated or better carrier:

AGE

DEATH BENEFIT

MONTHLY PREMIUM

35

$1,000,000.00

$45.50

40

$1,000,000.00

$62.12

45

$1,000,000.00

$89.16

50

$1,000,000.00

$134.31

55

$1,000,000.00

$210.00

 

Do you have a non-working spouse and a mortgage?  Do you want to guarantee your children go to college if you are no longer around?  Do you have large amounts of debt or business loans that you do not want to burden your family with if you do not come into work tomorrow?  Do you want to be able to buy your business partner out for millions of dollars if he dies prematurely so you can protecting your family’s interests?  These are just a few questions we ask our serious clients.