How much and what kind of insurance?
Most people own life insurance by accident, seldom based on a well thought out calculation of the amount appropriate to their personal situation. Few widows or widowers are prepared to carry on family responsibilities with adequate resources. Few surviving business owners are prepared to continue running their enterprise when their partner suddenly isn’t there one day. That is a shame, made all the worse when you consider how inexpensive quality life insurance has become!
Equally important to having an adequate amount is having the right kind! It is tempting to buy the cheapest kind of policy we can find. That would of course be term life insurance. But that is the most profitable to the insurance company selling it. Why? Because very few people die during the “term of coverage.”
For the young family, and for the fledgling business, term makes sense! And a lot of it! But ask your advisor to go beyond just quoting the cost; ask about the contractual provisions that can give you future options and flexibility! Is the term policy convertible to a permanent policy that guarantees to pay the death benefit “WHEN you die; not just IF you die during the term of coverage?”
Don’t stop there! Ask to see a comparative analysis of both the term policies of multiple companies and the permanent policies of those companies! Many life companies thrive on the gullibility of insurance buyers who buy super cheap term policies but horrendously poor permanent policies.
Little known to the public is how costly and inefficient is group term life. And nearly every organization in America provides employees with group term. To add to its cost, the Internal Revenue Service gets in the act by imposing income tax on any amount of group term in excess of $50,000 per employee!
For an analysis of your situation and the amount and kind of life insurance that may best fit your needs and budget, contact our AFMG Financial Concierge at Concierge@AFGIFG.com or call 800-809-0332.