The proceeds of a life insurance policy could ensure that your family maintains a standard of living to which they have been accustomed. Often individuals have insurance coverage through their employer that they consider to be a reasonable amount of money that would allow their loved ones to get through the rough times, not factoring in the many years to follow that financial assistance may be required. Some people reject the idea of life insurance because their home and autos are paid for, or they have little or no debt. In the event of your premature demise, how long would your family be in a position to maintain their same standard of living?
In reality, it is not nearly as long as most would predict. Life insurance can erase that predicament. Insurance can be customized and used to meet personal and/or business needs. A business partner can be assimilated to a family; insurance proceeds could ensure that a business partner has sufficient funds to continue in a business in which a partnered relationship once existed.
The need for coverage and the amount of insurance coverage that may be required is unique to individual situations. The coverage amount is often under or over estimated and many clients feel overwhelmed with the responsibility of making the decision. Working with a financial advisor takes the guesswork out of the equation. Your needs change with time and therefore should be re-evaluated when you experience any major changes in your life; things such as a marriage, the birth of a child, the start up of a new business or a new job, the purchase of a home, a divorce, perhaps you have a spouse that has come to rely upon you for financial security or you have taken on the responsibilities associated with aging parents. Needs change as situations change. It is important to work with an advisor and keep an open line of communication as changes occur.
What is Most Valuable to Insure?
People tend to insure their material possessions, yet often overlook insuring something far more important - their life. There is a substantial difference between individuals and possessions. Material things can be replaced, unfortunately your life cannot. When you purchase expensive items such as art, automobiles, a cottage or a home, you are inclined to insure your items against loss or damage. Most people see value in protecting their possessions; putting insurance in place, they purchase extended warranties, put insurance clauses in effect, or pay a higher premium to obtain a lower deductible should loss or damage occur. Yet for many, the single most important possession has been left unprotected - their life; they fail to see value in insuring themselves. As a financial advisor, I will assist you in determining if life insurance is a viable option for you, and if so, will help you to ascertain the amount and type of coverage that would be suitable for your personal situation.