Life Insurance Solutions For Families
What is the reason for buying life insurance?
If you have a family, odds are your primary life insurance goal is making sure your spouse and children are taken care of if something happens to you.
You may also want to accumulate retirement assets, save for college, and still have money to enjoy your life today.
For this important coverage, you will want to make a smart financial decision to get the right amount of coverage at the lowest cost.
Recommendation to get the right life insurance coverage:
Determine the amount of life insurance you want
Buying life insurance for your family is a statement that says:
“I love and care about YOU…
I want to provide for you NO MATTER WHAT happens to me.”
Therefore, the best exercise to perform as you start to determine the amount of life insurance you want is to imagine everything you hope for your family in the future.
Think about your career goals and imagine a future where everything goes perfectly. What would their future be life when you are always there providing for them?
Once you see this future, ask yourself this VERY EMOTIONAL QUESTION:
Would you want your spouse and children’s lives to change and become harder
OR
Would you want their future to be the same if you can’t be there?
This is a VERY Difficult image to think about, but nevertheless, it is an important one. Performing this exercise just this one time is a step toward ensuring that none of you will have to worry about what the family will do for money if you are no longer there!
How good a feeling will that be?
The death benefit is just one of the powers of life insurance.
In the event of premature death, these benefits allow someone to continue and provide for their family. The death benefit proceeds generate income and resources the family needs to have the best possible future in your absence.
Without life insurance, their future becomes a lot more uncertain.
You can use our life insurance needs calculator to determine the amount of life insurance coverage you would need to provide for them.
What kind of life insurance should you buy?
Term life insurance provides the highest death benefit per dollar of premium. You can get instant term life insurance quotes by clicking here.
Some term life policies also have additional benefits, such as critical illness and disability income riders that can pay a portion of the insurance policy’s face amount if you have certain major illnesses or are unable to work.
These additional benefits can provide much-needed funds during very difficult times.
Other forms of insurance, universal and whole life, are possibilities, but the “opportunity cost” of the additional premiums required to purchase these types of policies needs to be considered, as life insurance is just one form of insurance protection a family should consider owning. Allocating premium to the wrong areas of a family’s personal finances can hinder them from manifesting the life they desire.
Other Life Insurance Considerations for Families
Here are some other considerations for families looking to buy life insurance coverage. These considerations may decrease or increase the amount of life insurance coverage you purchase.
Consider Your Social Security Survivor Benefits
If you have young children, don’t forget to factor in the amount Social Security will provide to your survivors. This can be a substantial amount and can reduce the amount of insurance you need to create the future you’d want your life insurance to provide.
Make a life insurance plan with a Decision Tree Insurance agent – We love educated shoppers, and we know you will want to know which companies will give you the best policy at the best rate. The quotes you will receive on the life insurance quote tool are actual prices, but there are variables you will want to consider.
For example, do the policies have any additional benefits? How do life insurance companies underwrite and assign rate classes? Do the policies have an option to continue coverage after their expiration date? We are here to help you make the best decisions about purchasing life insurance for your family.
The "living benefits" provided by the life insurance you buy
Some life insurance policies provide more than just death benefit protection.
Some term, universal, and whole life insurance policies have additional protections attached to them, which can provide money if you experience a covered event. For example, some life insurance policies can provide substantial lump sum benefits if you experience a heart attack, stroke, or cancer.
Other policies can provide a monthly income for several years if you become disabled.
If you do in fact have a serious medical event and survive, these benefits will be a Godsend, BUT you will likely consume a large portion of those monies to live on. Unfortunately, this means the death benefit will be depleted, leaving little, if any, coverage left if you pass away.
Lastly, some policies allow the contract owner to create a trust that will protect the life insurance proceeds from lawsuits and control how the proceeds are spent. You can name your children as beneficiaries of a life insurance policy; however, you may not want them to receive a large lump sum of money when they turn 18 to do whatever it is they want to do with it.
You also don’t want to name an adult you trust as a direct beneficiary of money meant to take care of your children. This isn’t because they could purposely
This can happen without proper estate planning, but some life insurance policies have a solution built in.
Make a Family Life Insurance Plan with Decision Tree Financial
We love educated shoppers and we know you will want to know which companies will give you the best policy at the best rate. The quotes you will receive on the life insurance quote tool are actual prices, but there are variables you will want to consider.
For example, do the policies have any additional benefits? How do life insurance companies underwrite and assign rate classes? Do the policies have an option to continue coverage after their expiration date? We are here to help you make the best decisions about purchasing life insurance for your family.
