Protect Your Family’s Future With Life Insurance
Do you know if your family would have the financial resources to maintain their standard of living if something happened to you? According to the Life Insurance Marketing and Research Association, approximately 60 percent of Americans lack individual coverage and 22 percent have no protection whatsoever. (1) The very thought of premature death may make you worry about the changes your family would need to make if your income were no longer available. A good way to protect your family’s future is with life insurance.
Why do I need it?
Life insurance provides protection from financial loss if you or a family member die prematurely. Each situation is different, but it is commonly used for final expenses, taking care of dependents and continuing business activities. Final expenses may include an illness, burial expenses, legal fees or outstanding debts. It is especially helpful if your family exists on a single income or to maintain their current lifestyles. Mortgages, college education and your spouse’s retirement are all costs that may be paid for by life insurance. Also, if you own a business, the money can help ensure your family or business partners will not be left with outstanding debts.
How much coverage do I need?
Although coverage amounts vary from person to person, most financial planners agree you should have between five and seven times your annual salary. It’s best to invest in early because the older you get, the more expensive the premiums get. Some employers provide group coverage, but no one should rely solely on this type of coverage. Employee group life insurance protects you while you are an employee, but may disappear if you lose or leave your job.
What are my choices?
There are two main choices types of protection: term and permanent life insurance. Term life insurance provides protection for a specific period of time and is used to fill a temporary need, such as covering a mortgage or sending a child to college. It typically offers the greatest amount of coverage for the lowest initial premium and may be a good choice for families on a tight budget.
Permanent life insurance offers lifelong protection and allows you to accumulate cash value and equity. This type of coverage is used to fill long term needs, such as income replacement. Unlike term, you have the option to stop making payments in later years.
Life insurance is too valuable to ignore. If you do not currently have life insurance, don’t wait to protect your family’s future. If you currently have life insurance, re-evaluate your needs. Examining your life insurance needs every few years is a good idea, because changes and events in your life may alter the amount of coverage you need.
(1) Life Insurance Marketing and Research Association - Facts About Life 2005.
Policies issued by COUNTRY Life Insurance Company® and COUNTRY Investors Life Assurance Company®, Bloomington, IL.
Chris Packard is an Investment Solutions Representative with COUNTRY Insurance and Financial Services in Waterloo, IL. To learn more or to receive Chris’ newsletter please contact him directly at chris.packard@countryfinancial.com. You can also visit his website at www.countryfinancial.com
