The Bare Necessities: Food, Water, Shelter….Life Insurance

We can all agree that food, water and shelter are the most important elements needed in order to sustain life. What comes next on that list? It’s life insurance. A policy isn’t a luxury item to be purchased only if surplus cash is available; it’s a vital protection for those you love.

If you haven’t yet opted for a life insurance policy, make this the day you do. Here’s a sampling of instances where life insurance makes a huge difference:

Homeowner – If you pass away, a life insurance policy can cover your mortgage. This would allow your family to remain in the home and eliminate stress caused by having to move due to financial strain.

Loans – If you are a cosigner on a loan, who is going to assume your portion of debt if something happens to you? A simple life insurance policy would allow this financial burden to be fulfilled.

Business Owner – Many businesses carry debt or the legal responsibly to buy shares back from the deceased partner’s estate. Unless you want to be business partners with their heirs, life insurance is used to fund the buy-sell agreement. The business would then use life insurance proceeds to buy the shares back from the deceased partners estate. This is a win-win for both sides.

Breadwinner -You are the sole provider for your family. If something happens to you, where does that leave them? If you opt for life insurance, income protection can ensure the lifestyle they are accustom to.

Stay at Home parent – The job of a stay at home parent carries with it an intangible value; after all, that person raises the next generation. Many households forget that there is a financial value this person brings to the table. If they were not able to take care of the children, clean, cook, or perform all the duties they currently do, it would have to be outsourced. By taking out a life insurance policy, quality child care can allow you to keep the same working hours and thus provide the same lifestyle for your family.

Guardian of a Special Needs Child – Special needs children may remain with a guardian over the course of a lifetime. When the guardian passes away first, having the policy in place that will ensure a high standard of care can make a huge difference.

Divorced parent – Child support that continues even after you’re gone? -It’s possible with life insurance. Show your child that even if something happens to you, you will still continue to support them.

Have questions for what type of protection is best for your financial needs? It’s important to talk with a knowledgeable life insurance agent. Contact Abbey Bowersox, CLU at W3 Insurance for a free review and quote: 727-522-7777 x150.

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Life Insurance: The Ultimate Valentine’s Day Present

Take Valentine’s gifting to a new level this year with the ultimate present: life insurance. Chocolate says: You’re sweet. Roses declare: Our relationship is beautiful. Life insurance promises: I’ll take care of you even if I’m gone. Which is the most meaningful option?

We’re here to help you make this February the month your loved ones find peace of mind. Read below as we answer some of the most frequently asked questions regarding the purchase of life insurance:

  • How do I know which type of life insurance is right for me? Learn the difference between term life insurance, which locks in your rate for the just the duration of the term and whole or universal life options that accrue cash value. One size of life insurance does not fit all, and that’s why the advice of an experienced advisor is so helpful.
  • Do I need life insurance if I’m single? YES. Others may not be depending on your income, but if something were to happen to you, your family will incur the expense of final arrangements. Also, it’s advantageous to lock in your insurability while you are healthy and qualify for favorable rates.
  • I’m young and healthy, so why do I need a life policy? Congratulations – it’s the perfect time for you to apply! The healthier you are when you request life insurance, the lower your cost is likely to be. There’s a common saying that life insurance isn’t for the living – it’s for those they leave behind.
  • My health isn’t the best – should I still seek to purchase life insurance? Of course! And if your health conditions improve, your rate may as well. For example, if you are a smoker and are 30 pounds overweight at the time of policy purchase, you may be able to seek a re-evaluated rate if your health changes for the better in the future.

Take the next step by contacting Abbey J. Bowersox CLU, your W3 Insurance life insurance advisor, at 727-522-7777 x150. She specializes in finding the right policy for each client.

Keep the flowers. Buy the chocolates. And inside the card, tuck a printout of a life insurance policy with the message:

6 Reasons People Don’t Buy Life Insurance (and Why They’re Wrong)

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Let’s face it. Most people put off buying life insurance for any number of reasons—if they even understand it. Take a look at this list—do any of these scenarios sound like you?

  1. It’s too expensive. In the ever-burgeoning budget of a young family, things like day care, car payments and possibly student loans eat up a good chunk of money each month. Many people think that life insurance is just outside those “necessities” when money’s tight. However, consider these two points: life insurance is often not nearly as expensive as you might think, especially when you can get a good policy for less than the cost of a daily cup of coffee at the local café, and well, if money’s tight now, what if something happens to you?
  2. That’s the stuff for babies and old people, right? People of a certain age remember Ed McMahon telling them their grandparents couldn’t be turned down for any reason and figure that’s the target demographic for life insurance. Or, you might have been offered a small permanent insurance policy for your newborn, attractively presented with a cherubic infant on the envelope. The truth of the matter is that these are very specific insurance products—just as there are many insurance products for adults in their working years.
  3. I’m strong and healthy! You eat right, you stay active, and everyone admires how grounded and centered you are. You passed your last physical with flying colors! That’s GREAT! But you’re neither immortal nor indestructible. It’s not even that something could happen to you – though it could – as much as that when you’re at your strongest and healthiest, there’s no better time to get a policy to protect your loved ones. If you fall seriously ill or suffer significant injury later, it will make it tougher to get that kind of policy, if any at all.
  4. I have life insurance through my job. Many people are offered life insurance as part of their employee benefit coverage. Often, it’s the first time they encounter life insurance and have no idea that a $50,000 policy, or one or two times their salary, isn’t as much as they think it is. It sounds like a lot of money until you figure that it has to cover some or all of the expenses for your loved ones in your absence. Plus, if you leave the job, it’s typically the type of insurance that doesn’t “move on” with you.
  5. I don’t have kids. Sure, kids are a big reason why some people get life insurance. But that’s not the only litmus for needing protection. If there is anyone in your life who would suffer financially from your loss—your spouse or live-in partner, a sibling, even your parents—a life insurance policy goes a long way in making sure everyone’s still OK even if something happens to you.
  6. Life insurance—it’s on my list … eventually. There’s no deadline on life insurance, no mandate from the government on purchasing it. Your parents may have never talked to you about its importance, and it’s certainly not the most invigorating topic for conversation. But don’t let your “eventually” turn into your loved ones’ “if only.”

 

Source: https://www.lifehappens.org/blog/6-reasons-people-dont-buy-life-insurance-and-why-theyre-wrong/

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Why Child Life Insurance is a Great Investment.

As a parent, life insurance for your child is probably the furthest thing from your mind. You have other decisions to think about like college funds and savings or a life insurance policy for yourself. The thought of talking about life insurance is probably like the sound of nails on a chalkboard, at least it was for a friend who is near and dear to me.  Thankfully, we discussed the need, and she decided to purchase child’s life insurance for her son who was just an infant at the time. Child Life insurance

When Child Life Insurance Hits Home

At the time, he was a healthy child and it was inexpensive and easy to obtain the coverage. Then, at the age of 7 years old, he was diagnosed with a devastating illness. Trying to get coverage post diagnosis would have been a challenge. He may not have qualified, and the cost may have been higher due to a now pre-existing condition. Unfortunately, this wasn’t the first time I’ve seen this happen.  It has happened to several families close to me. I want to share this with as many parents and grandparents so that they can avoid this very unfortunate news. 

Securing child life insurance early on allows you to lock in your child’s insurability and to purchase coverage at inexpensive premiums.  The time to take action and secure their eligibility is now. 

Child Life Insurance Options

Did you know Auto-Owners Insurance Company has incredible products to meet your child’s life insurance needs?  When you obtain child life insurance through Auto-Owners Insurance Company’s Simplified Issue Whole Life policy, your child will have a policy amount that increases 50% automatically at both ages 18 and age 25 without a premium increase. The coverage, premiums, and the cash value is guaranteed to age 110. The greatest benefit: premiums never go up!  This product can be issued when the child is between 15 days old and 17 years old.  Auto-Owners has a great Whole Life policy for children that are over age 17.  They also offer different payment options including, a single paid in full payment or paying the premium for ten years. Once the premium is paid in full, your child/grandchild has a paid-up policy for life. Just think, now your child will not have to pay high monthly premiums on their life insurance, you took care of it for them! 

Help them with their financial planning and security.  Who wouldn’t want that for their child?  It is so important to invest in them and their future. What a wonderful, insightful gift you can give to your child or grandchild to protect their insurability. A gift that keeps giving!

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What is Key Person Life Insurance?

Key Person Life Insurance (also known as Key Man Insurance) is a life insurance policy purchased by a company on a key employee such as the owner, partner(s), majority shareholders or another person(s) whom the continued successful operation of the business depends on.  The policy protects the company in the event of their unexpected death.  Separate key person life policies are purchased for each key employee.  The company pays the premium and is the beneficiary of the policy.

key person life insurance

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Funding a Buy-Sell Agreement with Life Insurance

Life Insurance to Fund Buy Sell AgreementsLife rarely goes according to plan. An unexpected death, disability, divorce, or another event can derail a business and create a huge financial impact on its success. Your business is likely your biggest investment and the future resource for funding your retirement.

All businesses should prepare for a multitude of issues that could put the future of the business in danger. For instance, who would manage/own the business upon retirement or unexpected death/disability of an owner?  Is there an internal candidate who is experienced enough to manage the business, or would the business need to be sold to an outside competitor? What about your family’s needs regarding the business?

A buy-sell agreement is an excellent solution to this risk. It is simply a “will” for how you want the business to transition on Your Terms based on certain triggers such as retirement, death or disability.

There are options for funding a buy-sell agreement, but some options open the door to other problems.

  • A company savings account would pay cash when an owner dies, but if death unexpectedly occurs, there may not be enough funds in the account to carry the business.
  • A loan could be obtained at the time. Unfortunately, interest could be high and it may create unnecessary risks for the surviving owners and business.

The best option to fund a buy-sell agreement is a life or disability insurance policy. These types of policies allow for instant cash/liquidity to be used in either continuing the business or preventing a fire sale, allowing proper time for a buyer to be found. Other advantages include: death benefits proceeds are generally income tax free, funds are purchased for pennies on the dollar, and premiums are likely to be significantly lower than loan interest.

Life insurance also offers the option of a Cross-Purchase Plan or an Entity Plan. In a Cross Purchase Plan, each owner purchases a life insurance policy on all other owners and is named beneficiary. In an Entity Plan the business purchases a life insurance policy on each owner and is named beneficiary of plan allowing the business to buy shares stock redemption style, preventing other owners from paying out of pocket.

Both a Cross Purchase Plan and an Entity Plan offers flexibility such as:

  • Price fixing, formula, or appraisal (most important! Establish fair market value of stock or business at time of agreement.)
  • Pay in cash or installment.
  • Different terms for different events (different prices for retirement, death, disability, etc).

Having a buy-sell agreement is imperative. Preparing one in advance eases negotiations and agreements as no one is sure what the next day will bring.

 

How Much Life Insurance Do I Need?

shutterstock_71485084Several factors go into knowing how much life insurance is right for you and your family. The goal is to keep your family living in their current lifestyle. Some things to look at include current debt, expenses, retirement savings, and current/future income.

Since there are many things to take into consideration, let’s break them down into three sections.

Family Needs – There would be immediate financial obligations should you pass away. These include final expenses, any unpaid medical expenses, outstanding mortgage and other debts. Next, you will need to determine how much income is needed to sustain your family on a monthly basis. What are your current monthly expenses? If you or your spouse is a stay-at-home parent, you may have extra expenses to accommodate for. Did you know that, according to  Salary.com, the average estimated salary of a stay at home mother was $118,905 in 2014. This is just something to think about when reviewing expenses. Daycare, cleaning, food and other expenses would likely increase to accommodate that change.

Future Obligations – You must also think of any future financial obligations. College tuition and fees for your children is an important cost to factor into your planning. Perhaps you planned on paying for your daughter’s wedding. Maybe you would like to contribute to your spouse’s retirement and make sure that he or she is able to retire once your income has ceased.

Available Resources – Take a look at your current accounts. Do you have savings accounts, 401ks, IRAs, 529 college plans, etc? The value in these accounts all factor into the amount of life insurance that you would need.

This can all seem pretty overwhelming. Luckily, LifeHappens.org has a great online calculator that can help you determine how much life insurance to purchase. This is a great starting point on determining how much life insurance is needed.

Once you have gone through the online calculator to help determine the amount of insurance needed, your life advisor can help you find the most cost-effective life insurance program to cover your needs. Contact Abbey at 727-522-7777 x150 today for a life insurance quote.

Ready for your personalized quote?

Children’s Life Insurance: Insuring Their Insurability

Children's Life InsuranceParents all over the world have one thing in common; we love our children more than we love ourselves. The smiles that melt your heart, the injuries that make you want to kiss away the pain—we would do any and everything to protect our precious little ones. What about insuring them for the unthinkable? No parent wants to think about their child becoming ill, or worse. As responsible parents, our duty is to prepare for all possible outcomes.

When a parent purchases a child life insurance policy early in life, they are ensuring their child’s insurability. Buying life insurance on a child will remove the following obstacles, each of which will increase their rates or even render them uninsurable if they were to apply once they were older.

  • Developing an adverse medical condition
  • Tobacco use
  • Avocation & Occupation factors
  • Family History – heart disease, cancer, etc.

Children who develop medical conditions will most likely not qualify for life insurance policies later in life, or, at the very least, their premium will increase. Juvenile diabetes is an excellent example. Many who are diagnosed before the age of 10 are now uninsurable. Your children may one day thank you for allowing them to have their own life insurance policy in the event they do become uninsurable. We have a client who shared a story about how her parents purchased a life policy for her when she was a child. Five years ago she had a kidney transplant which left her ineligible for life insurance. She had her first child last year and now, because of the life policy her parents purchased for her, she has protection for her income. Her parents never thought a simple decision made thirty years ago would have helped her in such a profound way.

Simplified Issue, whole life policies start at $7 a month for children below 5 years old. Protect your child’s future by calling us today.

The Skinny on Disability Insurance

Disability InsuranceYou purchase auto insurance, probably homeowners insurance, perhaps even life insurance, but if you’re still working have you protected your income?  Disability insurance replaces a portion of your income if an accident or illness stops you from working.  If you are self-employed you NEED this insurance!

Multiple sclerosis ended Robert Howe’s career as a dentist. Only 53, Dr. Howe no longer works, but he is still receiving a monthly check that comes close to matching his old income.  The reason:  a disability insurance policy.

You can buy a full policy if you’re self-employed or a supplemental if your employer’s policy is minimal. The policies pay monthly benefits if you are not able to work and some pay partial benefits if you can only work part-time.  Protecting your income/savings is especially important as we age and begin thinking about building up our retirement savings. The most common disability claims for 50 and older:  cancer, arthritis, joint inflammation and back strain.

Coverage, availability and price depends on your health, age, tobacco use, and of course, on your occupation and the level of income you want to replace. A basic medical exam should be expected and pre-existing conditions may be excluded or a surcharge may be added. The older you are when you purchase coverage the higher the premium. For instance, a policy that pays a $5,000 monthly benefit through age 66 for a healthy 55-year-old male might cost $3,840 a year; the same policy may cost $2,228 a year for a healthy 50-year-old male.

Disability insurance usually covers from 50% to 70% of your gross income.  You will need to add up your expenses and other sources of income to calculate the amount of insurance you need.  Plus, you will need to figure the length of time you want to receive a monthly benefit.

At W3 we understand your needs, and are ready to answer your questions. Contact Abbey Bowersox at 727.522.7777 ext 150 for more information.

 

Children’s Life Insurance: Insuring Their Insurability

Children’s Life Insurance

Parents all over the world have one thing in common; we love our children more than we love ourselves. The smiles that melt your heart, the injuries that make you want to kiss away the pain—we would do any and everything to protect our precious little ones. What about insuring them for the unthinkable? No parent wants to think about their child becoming ill, or worse. As responsible parents, our duty is to prepare for all possible outcomes.

When a parent purchases a child life insurance policy early in life, they are ensuring their child’s insurability. Buying life insurance on a child will remove the following obstacles, each of which will increase their rates or even render them uninsurable if they were to apply once they were older.

  • Developing an adverse medical condition
  • Tobacco use
  • Avocation & Occupation factors
  • Family History – heart disease, cancer, etc.

Children who develop medical conditions will most likely not qualify for life insurance policies later in life, or, at the very least, their premium will increase. Juvenile diabetes is an excellent example. Many who are diagnosed before the age of 10 are now uninsurable. Your children may one day thank you for allowing them to have their own life insurance policy in the event they do become uninsurable. We have a client who shared a story about how her parents purchased a life policy for her when she was a child. Five years ago she had a kidney transplant which left her ineligible for life insurance. She had her first child last year and now, because of the life policy her parents purchased for her, she has protection for her income. Her parents never thought a simple decision made thirty years ago would have helped her in such a profound way.

Policies start at $10 a month for children below 5 years old. Protect your child’s future by calling Abbey Bowersox at 727-522-7777 today.