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halcyondaysforyou · 3 years ago

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From Generation X to Generation Z: A Guide to Life Insurance For Every Age Range

The need for life insurance is a given. Always. But what does this mean? When and why? What's the right time or age to purchase life insurance, and what will it cover?

Thinking about life insurance is not fun - it's not an uplifting or encouraging topic. It may seem utterly unrelated to the young and healthy, and when considering it, thoughts can lead towards gloomy observations about what would happen if.....

But things happen. And at some point, earlier than later, there's a real need to be prepared. Disasters, illness, and accidents can cause financial hardships though these can be avoided with the proper planning at any age. The key is knowledge and education, knowing what to ask and who to turn to for coverage.

The following are life milestones for purchasing life insurance policies:

Life Insurance for 20s Age Range

Status: Great health, young, optimistic outlook

Responsibilities: College, first time living independently, first job, marriage, first investment, children

The most affordable age to buy life insurance is during the 20s. Most people don't need it at this age as they are healthy and young, but precisely this poses less risk to the insurer, which can offer the most affordable rates.

At this age, one's health history is at its best without any future red flags, and there are usually no financial dependents to which funds need to be allocated.

For beneficiaries of 20-something, the life insurance proceeds can cover mortgage or housing payments, debts like student loans, childcare expenses, and final expenses.

Life Insurance for the 30s Age Range

Status: Good health, new responsibilities

Responsibilities: Family, mortgage, aging parents, independent businesses, education, children

For a wide audience range still healthy, statistically, during these years, there can already be financial responsibilities and dependents - spouse, children, and even aging parents. Their economic well-being relies on an external income that needs to be protected, and life insurance is one of the most straightforward methods.

The recommended coverage at this age can be term life insurance for a fixed amount of time, 10, 20, or 30 years. Purchasing it at a young age can help lock in an inexpensive rate for the entire coverage duration.

For those covered by life insurance in their 30s, proceeds can help cover a mortgage a spouse is left with, income for a partner that stays home with the children, childcare and education expenses, as well as medical bills and final expenses.

Life Insurance for the 40s Age Range

Status: Overall good health, responsibilities, and long term plans

Responsibilities: Mortgage, debt, non-working partner, medical bills, dependents

Today, Americans live longer, but the recent unexpected circumstance has shifted the estimated age-adjusted death rate; This stretch of years is still a great time to readjust or acquire life insurance policies before rates start to increase. It's essential to find insurance providers that can offer affordable life insurance coverage aligning with each person's needs and abilities.

Policies may have a wide range of options, and it's important to carefully review the policy details, apply candidly, and make a note of pricing to save money.

The policy's proceeds can cover the following for beneficiaries:

The remainder of a mortgage

Cover a salary gap due to increased earnings

Protect a spouse dependent on a sole provider's income

Childcare present and future expenses

Financial cushion for medical and final expenses

Life Insurance for the 50s Age Range

Status: Health issues may occur, financial responsibilities

Responsibilities: College expenses, investments, aging parents, outstanding debt

Purchasing life insurance is crucial here but will cost more though still a price that is feasible for most. During these years, the majority may already have financial dependents, more family members who may need more funds for support, assets required for shelter, or a steady income. The overall sentiment is to protect these.

Health and well-being are critical factors to obtaining the coveted coverage at a reasonable rate. However, insurance companies may be more hesitant and careful about providing low-cost policies within this age range.

Like in previous years, life insurance coverage supports beneficiaries with the policy's proceeds. In addition to what the proceeds have been able to cover in the past, these may also cover medical bills, which may be more prevalent now.

The advantage of acquiring life insurance is apparent at any age, during some age ranges a bit less than others, at a time when the future is far and long. However, in today's climate and actual current world events, it's clear the need for protection is high.

Often the choice between investing in life insurance and other expenses may be a bit murky, especially when funds are limited. Fortunately, life insurance companies are now more sensitive than ever to their audience's needs and abilities. As a result, there are ample flexible coverage options based on lifestyle, health, and financial limitations.

Where in the past, the process of life insurance acquisition deterred people due to a lengthy bureaucratic process, today companies, like Sproutt.com, are making it easier than ever to secure life insurance at any age.

The digital revolution and emphasis on user experience and customer service now allow this process to be at every person's fingertips - from online inquiries, short online health questionnaires, personal preferences and choices, various policy choices, application, and quick approval from the insurers—all online, many without the need for medical examinations, and within minutes.

Life insurance at any age is feasible, accessible, and provides peace of mind. Acknowledging the present day circumstances, having life insurance coverage can provide some stability in an unstable world.

Credits to: Annie Dudkiewicz

Date: June 28, 2021

Source: https://finance.yahoo.com/news/generation-x-generation-z-guide-144348092.html

#lifehealthadvisors #arete #ethos #future #insurance #foryou

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halcyondaysforyou · 3 years ago

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Why Rich Couples Are Cashing in On This Life Insurance

Survivorship life insurance, also called second-to-die insurance, may be attractive for married couples with a high net worth. When the second policyholder passes away, the policy pays out a death benefit. So how are survivorship policies helpful in estate planning? In addition to leaving something behind for beneficiaries, this type of life insurance can yield tax benefits to the surviving spouse during their lifetime. In order to get the right life insurance that is set up correctly to use in your estate planning process, consider working with a financial advisor.

What Is Survivorship Life Insurance?

Survivorship life insurance is a type of life insurance that’s designed to cover two people. It’s a type of permanent life insurance that may be sold as whole life, variable life or universal life product. Survivorship policies can accumulate cash value, which the policyholders can withdraw or borrow against.

With a typical life insurance policy, only one person is covered. When that person passes away, the insurance company pays a death benefit to the person or persons named as beneficiaries. However, with survivorship insurance, two people are covered by the same policy. So a married couple might purchase this type of coverage and name their adult children as beneficiaries. The policy remains in effect for the duration of both policyholders’ lifetimes, as long as premiums are paid. A death benefit is only paid out after both policyholders have passed away.

How Are Survivorship Life Insurance Policies Helpful in Estate Planning?

Survivorship life insurance policies can be a useful estate planning tool for couples who have a high net worth and want to minimize taxes while creating a legacy of wealth. When a spouse dies, the surviving spouse can inherit their assets and property tax-free. Once the second spouse passes away, the estate tax would be due on assets in excess of the federal estate and gift tax exemption limit.

For 2022, the estate and gift tax exemption limit is $12.06 million or $24.12 million for married couples who file jointly. Staying under that cap is important from a tax perspective, as the upper limit for the estate tax rate is currently 40%. Survivorship policies allow the policy owners to preserve wealth by providing beneficiaries with a death benefit that can be used to pay estate taxes.

The death benefit of a survivorship policy is generally tax-free for beneficiaries. They can use this money to cover estate taxes due following the death of the second spouse, along with any administrative costs associated with probate or the administration of a trust that was created as part of your estate plan. That means that beneficiaries don’t have to rely on other assets to cover those expenses.

Since survivorship policies cover two people, they can provide a larger combined death benefit. They can also be more tax-efficient than purchasing two separate policies to cover each spouse. In terms of cost, you may pay less to buy a single policy that covers both you and your spouse versus purchasing individual coverage.

Who Is Survivorship Life Insurance Right For?

Generally speaking, survivorship life insurance is right for couples who want to leave behind a sufficient death benefit to cover estate taxes, while preserving their current assets. Purchasing this type of policy assumes that neither spouse would need to receive a death benefit during their lifetimes when the other spouse passes away. For that reason, this type of policy may be more appropriate for wealthier couples.

Aside from the estate planning benefits of a survivorship policy, there are some specific use-cases for this kind of insurance. Here are some scenarios when a survivorship policy could make sense:

Special needs planning: If you have a child or other dependent with special needs, a survivorship policy can help to ensure they’re taken care of after you and the other policyholder are gone. The proceeds can be used to fund their care directly or be directed into a special needs trust.

Charitable giving: Survivorship policies can help you to establish or continue your philanthropic efforts when an eligible charity is named as the beneficiary. Depending on how the policy is structured, you may need to coordinate your coverage with a charitable trust to maximize tax efficiency.

Business succession: If you own a business, it’s important to consider what might happen to it after you and your spouse are gone. You may want your children to take over running it and a survivorship policy could provide funding to make that transition smoother. Likewise, you could use a survivorship policy to pay a death benefit to your business partner so they can keep the business going after you’re gone.

Purchasing survivorship life insurance could also make sense if one spouse has an ongoing health condition. Life insurance companies use your medical history to assess risk and it’s possible that you could be denied a policy or face much higher premiums when you have certain health issues. A survivorship policy could make it easier for you to both be covered and at an affordable price.

As mentioned, survivorship policies can accumulate cash value that policyholders can tap into during their lifetimes. For example, you might take a loan from your policy to pay for medical expenses. While loans don’t necessarily need to be repaid while you’re still living, any outstanding balances when you pass away can reduce the death benefit your beneficiaries receive.

When to Consider Another Type of Life Insurance

Understanding how survivorship life insurance policies are helpful in estate planning is key to deciding if this type of coverage is a good fit for your situation. If you’re married and you want to ensure that your spouse has sufficient assets to meet their needs, then a survivorship policy may not be the best option. Again, only the beneficiaries receive a death benefit from this type of life insurance, which excludes your spouse.

Purchasing individual life insurance policies could be the better choice when both spouses want to ensure that the other is provided for. Term life insurance may be appropriate if you think you’ll only need coverage for a certain amount of time. While it doesn’t build cash value, it’s generally cheaper than permanent life insurance coverage.

With permanent life insurance, you’re covered until you die as long as premiums are paid. You can build cash value in the policy, though the rate of return you realize can depend on which type of insurance you have. With either term or permanent life you may be able to enhance your coverage by adding riders. For example, you might add an accelerated death benefit rider if you’re concerned about developing a terminal illness.

There are also hybrid policies that are designed to cover multiple scenarios. If you think you or your spouse might need long-term care at some point, you could purchase a policy that includes both LTC coverage and a death benefit. If you need long-term care, you can use your policy to pay for it and if you don’t, then the policy will still pay out a death benefit to your beneficiaries when you pass away.

The Bottom Line

Survivorship life insurance can be a valuable estate planning tool for wealthier couples or any couple who wants to create a legacy of wealth. Whether it’s a good solution for you can depend on your individual situation. Regardless of if you choose a survivorship policy or another type of life insurance, having coverage in place can provide you and your loved ones with peace of mind.

Tips for Estate Planning

Consider talking to your financial advisor about how survivorship life insurance can help with estate planning and whether it makes sense for you. If you don’t have a financial advisor yet, finding one doesn’t have to be difficult. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

In addition to life insurance, there are other elements you may want to include in your estate plan. A last will and testament, for instance, is a fundamental part of estate planning for ensuring that your assets are distributed according to your wishes. You can also use a will to name a guardian for minor children.

Credits to: Rebecca Lake

Date: August 17, 2022

Source: https://finance.yahoo.com/news/why-rich-couples-cashing-life-160000354.html

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#lifehealthadvisors #arete #ethos #insurance #couple #future #foryou

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halcyondaysforyou · 3 years ago

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This is How The Rich Use Insurance to Pass Down Wealth

A second-to-die policy is designed for couples who want to share a life insurance policy with specific beneficiaries, such as children and grandchildren. The life insurance company will only make a payout to the beneficiaries after the last survivor passes away. We’ll explore what a second-to-die insurance policy is and what to consider before jumping into this life insurance product.

Keep in mind that it is often a good idea to discuss your unique situation with a financial advisor for help with decisions about your insurance options.

What Is A Second-To-Die Insurance Policy?

A second-to-die policy is sometimes called a survivorship universal life insurance policy. As the name suggests, the death benefit is only paid out to the beneficiaries after the second policyholder passes away.

Married couples may be the most likely to pursue this policy. But it’s an option for any pair that shares a common financial interest. Other potential pairs for a second-to-die policy include those in a civil union, cohabitating, or business partners.

In many cases, this type of policy is used by married couples to pass on wealth to their children. But other partners, including business partners, may choose to take advantage of this insurance option.

The major difference between this policy and other options is that the surviving partner won’t receive any benefits when the first partner dies. Instead, the insurance company withholds the proceeds of the policy until the surviving partner dies.

Second-to-die policies can include a cash value that accumulates over the term. As you age, the cash value grows to cover higher annual premiums. Over time, the cash value of your policy will grow tax-deferred.

How Second-to-Die Policies Work

In general, this type of insurance policy is designed to pay estate taxes or pass wealth to surviving heirs. Policyholders will make annual premium payments to cover the death benefit. After both policyholders pass away, the insurance company will issue a death benefit payment to the beneficiary of the policy.

The goal of a second-to-die policy is to limit the tax burden of a surviving partner. Instead of paying federal estate taxes upon the first spouse’s death, the surviving spouse can avoid draining their reserves to cover estate tax bills.

Second-to-die policies have some similarities to joint insurance policies, another type of shared life insurance between two people. Joint life insurance generally comes with a “first-to-die” provision. It gives a payout to the surviving partner after the first insured person dies. But some joint life insurance policies are written as second-to-die contracts.

Benefits of a Second-To-Die Insurance Policy

Here’s a look at the advantages of a second-to-die policy:

More affordable. In most cases, premium payments for a second-to-die life insurance policy are significantly less than paying two separate premiums for the policyholders.

Easier to qualify. With traditional life insurance policies, poor health can make it challenging to lock in a policy. Since there are two policyholders, it’s possible to get a policy even if one partner is in bad health.

Estate planning tool. A life insurance policy is a useful estate planning tool. Not only can it help with tax planning, but it will also issue a death benefit to your beneficiaries.

Customizable. When choosing a policy, you can work with an insurance company that offers customizations for your unique situation.

Drawbacks Of a Second-To-Die Insurance Policy

There are also some potential disadvantages to consider:

Sticky situation if partners split. A divorce can result in awkward negotiations over how the policy gets handled.

No benefits for surviving partner. In situations where policy holders have removed one or more persons as beneficiaries but continued to pay premiums on the policy, the partner who survives won’t receive any death benefit.

The final payout can be decades later. If one partner lives significantly longer than the other, the beneficiaries will be waiting around a long time before receiving a death benefit.

When Is a Second-To-Die Policy a Good Idea?

A second-to-die policy isn’t the right life insurance policy for every situation. But in some cases, it makes the most sense. Typically, wealthy families purchase this policy with the goal of passing funds to their heirs. It’s not a good idea if either surviving partner would struggle to make ends meet after the death of the other. If either spouse would need a death benefit to meet financial obligations, then it’s smart to opt for policies that prioritize the fiscal well-being of both partners.

The Bottom Line

Life insurance is a helpful tool to protect the interests of your heirs. If your spouse won’t need a death benefit to make ends meet, then a second-to-die life insurance policy is a relatively affordable way to provide for other beneficiaries.

Life Insurance Tips

When choosing a life insurance policy, the right fit varies based on your unique circumstances. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Finding the right life insurance policy starts with asking yourself some questions about your goals. If you aren’t sure how much coverage you need, check out SmartAsset’s free life insurance calculator.

Credits to: Sarah Sharkey

Date: August 30, 2022

Source: https://finance.yahoo.com/news/rich-insurance-pass-down-wealth-140027109.html

#lifehealthadvisors #arete #ethos #future #insurance #foryou

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halcyondaysforyou · 3 years ago

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Myth: Life Insurance is NOT Taxable

The reality is that life insurance is treated as an asset in your estate. And if the payout pushes your estate past federal or state estate tax exclusion limits, it could trigger a hefty estate tax bill. If this is a concern, you may want to consider an irrevocable life insurance trust.

You may think that life insurance is tax-free. Unfortunately, the “no tax on life insurance” idea is only partly true: Life insurance is income tax-free. In other words, recipients of a decedent’s life insurance policy do not have to pay income tax on that sum.

However, if it’s large enough, the decedent’s estate — including any life insurance proceeds — could be subject to federal and/or state estate taxes. As an example, let's say you have a $1 million life insurance policy. The IRS deems that policy an asset, just as if you had an investment portfolio worth $1 million. And upon your death, the IRS sees it as a million-dollar asset you just transferred to your beneficiaries, and taxes it accordingly. That estate tax is usually due upon death, and it can be substantial.

If you’re among those wealthy enough to be concerned about this possibility, how can you avoid having your life insurance proceeds included in your estate and therefore possibly subject to the estate tax? You can create an irrevocable life insurance trust (ILIT) and name that trust the owner of your life insurance. By doing so, that particular asset will be removed from your estate. Upon your death, the proceeds from your life insurance will pass on to your heirs not only income tax-free but estate tax-free as well.

Who might be a candidate for an ILIT? If your estate is in excess of the federal “application exclusion amount” (which for 2021 is $11.7 million for single individuals and $23.4 million for couples under the Tax Cuts and Jobs Act of 2017)*, an ILIT could save your family up to 40% in federal estate taxes. It’s a benefit worth the legal fees and complexity associated with setting up an ILIT. Keep in mind, 12 states, plus the District of Columbia, have their own estate taxes, and their exclusion amounts may be much lower than the federal limits. Another benefit: An ILIT can help you can avoid tax on both spouses’ estates. Life insurance proceeds can be held in a trust for the benefit of the surviving spouse during his/her lifetime. When that person dies, the proceeds will not be included as part of his/her estate either, but will pass tax-free to your children and then to your grandchildren, as an ILIT in a multigenerational trust.

Be forewarned: The IRS scrutinizes ILITs carefully. In order to make sure your ILIT passes IRS inspection, you must:

Transfer any polices you already own to the ILIT by completing an “absolute assignment” or “change of ownership” form.

Relinquish all ownership rights to the trust. It’s not as simple as you may think. In fact, you can be charged with retaining an ownership right in the life insurance policy without ever having held title to that policy. If you want to keep insurance proceeds out of your estate, you need to:

Give up all ownership rights to the policy, including the right to change beneficiaries, borrow from cash values, and make premium payments;

Enter into an annual cash partition agreement in order to create separate funds from which premiums are paid so that there is no mistake as to whom the payor/owner really is; and

Maintain a change of ownership in an existing policy for at least three years before the insured's death. In other words, you must survive for at least three years after transferring your policy to the trust. Otherwise, the proceeds will be taxed in your estate as if you retained ownership of the policy.

Bottom line: Your heirs will not pay income tax on any life insurance proceeds they receive, but if the estate is large enough, they will pay estate taxes on the policy — unless you set up an ILIT at least three years before your death. And though ILITs can save some families a great deal of money, it’s best to enlist a professional to design a trust that will pass IRS muster.

Credits to: Ken Moraif

Date: July 12, 2021

Source: https://www.kiplinger.com/article/insurance/t034-c032-s014-myth-life-insurance-is-not-taxable.html

#lifehealthadvisors #arete #ethos #lifeinsurance #foryou

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halcyondaysforyou · 3 years ago

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Other Uses for Life Insurance You May Not Know About

Did you purchase a life insurance policy years ago to protect your loved ones? Just over half of adult Americans have a life insurance policy, and more say they’re interested in purchasing one. However, needs can change later in life when the kids are grown up and a retirement nest egg seems big enough to absorb financial shocks. Those nearing and in retirement may see less reason for their life insurance policy than when they first purchased it and may see the premiums they pay as burdensome. But for many, there are potential benefits to continuing a life insurance policy or purchasing certain types in retirement, when it comes to taxes, estate planning and long-term care. Here are some ways to use a life insurance policy that you may not know about.

What Are the Tax Benefits of Life Insurance?

The tax benefits of a life insurance policy are potentially even more valuable now that the “stretch IRA” is no more. In 2019, the SECURE Act (Setting Every Community Up for Retirement Enhancement) eliminated the option for most non-spouse beneficiaries to stretch out RMDs (required minimum distributions) over the course of their lifetime. Now, most non-spouse beneficiaries must drain tax-deferred retirement accounts within 10 years of the original owner’s death. Depending on how much is in the account and the beneficiary’s tax situation, this could mean an increased tax burden and a faster end to the tax benefits of the inherited account.

In contrast, life insurance proceeds paid to beneficiaries are generally income tax-free. In fact, some individuals should consider using life insurance to help transfer wealth to the next generation. Life insurance policies can provide business owners additional opportunities, such as paying off business debt, funding buy-sell agreements related to someone’s business or estate, or funding retirement plans.

What Are the Long-Term Care Benefits of Life Insurance?

It’s estimated that 70% of Americans age 65 today will need long-term care at some point, and the costs can be staggering: The median annual cost for an assisted living facility is $51,600 and the median

annual cost for a private room in a nursing home is over $105,850. Yet, many Americans nearing and in retirement do not have long-term care insurance. Many people who do want to plan for long-term care costs may not want to invest in traditional long-term care insurance, because premiums can rise significantly, and there are typically no benefits if the owner ends up never needing long-term care. As a result, traditional long-term care insurance has become less popular in the last decade. An alternative option is to use a life insurance policy with long term care benefits. These policies combine the benefits of long-term care insurance with those of permanent life insurance through the purchase of an optional rider. They can still provide a death benefit if the owner passes away without having needed long-term care. If the owner does need long-term care, a certain amount of money or time is allotted to cover costs. If this amount isn’t used up, some policies can offer a “return of premium” guarantee upon death or termination of the policy. If a remaining amount is passed on, beneficiaries may be able to enjoy it tax-free, depending on the policy.

Unlike traditional long-term care insurance, this type of life insurance policy’s premiums don’t rise. However, some require lump-sum payments at the start, which can make purchasing a policy difficult for some.

The Bottom Line

While your financial planning needs may change as you near and enter retirement, that doesn’t necessarily mean that your life insurance policy is obsolete. There are many potential benefits to life insurance beyond its traditional use to look into when creating a retirement or estate plan. A professional can help you understand how your particular policy works, and if any of these strategies could apply to your financial plan.

Credits to: Chris Harlow

Date: July 21, 2021

Source: https://finance.yahoo.com/news/other-uses-life-insurance-may-044205789.html

#lifehealthadvisors #arete #ethos #insurance #future #musthaves #foryou

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halcyondaysforyou · 3 years ago

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This is what life insurance can be used for

When it comes to protecting the people who depend on you, life insurance is crucial. It's a smart way to ensure that your loved ones will be taken care of in the event of your death.

Granted, there are a variety of considerations to account for when trying to determine how much life insurance you actually need. And which type of life insurance you choose (whole or term) is specific to your personal financial situation.

Once the amount and type of life insurance are determined you can start paying your premiums knowing that your loved ones will remain secure and protected. But how secure and protected will they actually be? How does a life insurance payout work and what can that money be used for? The answers to these questions will help you decide if the type of policy you have - or want to upgrade to - is sufficient.

If you don't have life insurance or want to boost how much you already have, now is a good time to get started. You can begin with a price estimate today.

Regardless of where you fall in terms of life insurance protection, however, it's helpful to understand what an eventual policy payout can be used for.

What can you use life insurance for?

Life insurance policies can be used for several different reasons.

Many people will use a portion of a life insurance policy to cover funeral expenses. Those with spouses or children will usually buy a policy so their loved ones can easily cover the service costs after they're gone.

You can also place the proceeds in a trust so the beneficiaries will not have access to the entire funds when you pass. This may be helpful if you have small children and want to make sure they're responsible with the money.

Sometimes people purchase life insurance to provide a legacy for non-dependents. For example, if you're single with no children, you may want to purchase life insurance with your nieces and nephews as beneficiaries. If you have pets, you can also purchase a policy so the friend responsible for taking care of your animals will have the funds to do so.

Some people will purchase specific life insurance policies, such as Universal Life Insurance, to use as investments. Unfortunately, these policies often have high fees and will usually fail to match the stock market. You're often better off investing in a conventional retirement account like a 401(k) or IRA. Usually, only high net-worth individuals may benefit from purchasing one of these policies.

One note: while these instances are what life insurance is typically used for, the payouts beneficiaries receive can be used however the recipient wishes. There are no specific limits or requirements to be met. The cash received can be used as one sees fit.

If you don't have life insurance, or, realizing what it can cover, want to boost what you currently have, there are options to pursue. Getting a life insurance quote is a great first step.

While pursuing a new policy, however, it's also beneficial to have a clearer understanding of life insurance policies overall. This will help ensure you make the right decision when insurance shopping.

What is life insurance?

Life insurance is a way to protect your family in case you pass away during your prime earning years. An appropriate life insurance policy should pay out enough so your family doesn't struggle financially after your death.

Only those who are providing financial support for other people truly need to buy life insurance. For example, if you're single with no dependents, you probably don't need to purchase a policy. However, if you're married and have two kids, you will likely need a substantial policy.

Life insurance policyholders pay a monthly premium. If they pass away while the policy is in effect, the beneficiaries will receive the payout, which is not taxed.

There are two main types of life insurance: term and whole. As it sounds, term life insurance is only sold for a specific term, usually ranging from 10 to 30 years. Whole life insurance is designed to cover you for the duration of your life.

Term life premiums are usually much less expensive than whole life premiums because you're less likely to utilize the policy.

Most consumers do not need a whole life policy because they don't require coverage for their entire life. For example, if you pass away while you're retired, your beneficiaries will receive any remaining investments and savings. And since you weren't providing income via your job, you don't have to replace that income stream when you pass.

Some employers offer free or discounted life insurance coverage as a workplace benefit, but the total amount may range widely. If you leave the company or are let go, the policy will be forfeited and you will no longer have coverage. It's often wise to have your own life insurance policy separate from your employer.

Credits to: Zina Kumok

Date: August 25, 2022

Source:https://finance.yahoo.com/news/life-insurance-used-182602473.html

#lifehealthadvisors #areteautomation #ethos #future #musthaves #foryou

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halcyondaysforyou · 3 years ago

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Shopping for life insurance with your spouse

Setting up the right financial plan for your family involves life insurance coverage for not just you, but also your spouse.

Shopping for life insurance with your spouse or domestic partner is similar to shopping for two individual life insurance policies. But although joint life insurance policies are a unique option for married couples, they rarely make financial sense. Newlyweds and long-time couples should work together to ensure the family's life insurance policies will cover any dependent children, future financial obligations, and shared debt.

Key takeaways

Married couples have the option of buying separate life insurance policies or a joint policy.

Joint life insurance policies insure both partners, but are costlier and are rarely the best option for couples.

Domestic partners have the same life insurance coverage options as married couples, as long as they can prove insurable interest.

It is illegal to take out a life insurance policy on your spouse without their knowledge.

Types of life insurance for couples

There are two main types of life insurance anyone can choose from, including couples regardless of marital status – permanent and term life insurance. While both offer a death benefit — a tax-free lump sum the beneficiary receives if the insured dies — term is the most common type of life insurance. It is also pretty affordable, especially if you purchase it while still young and in good health. A term life policy can last up to 40 years, but it eventually expires.

Permanent life insurance, on the other hand, never expires and usually includes a cash value component in addition to the death benefit. The cash value earns interest over time. Permanent life, however, is often pricey — five to 15 times more expensive than term — but it can be a good option for high-income earners or people with lifelong dependents.

In addition to choosing a specific type of life insurance, couples can supplement their coverage by adding riders to their policy. A rider is an add-on that can offer additional protection under certain circumstances.

A few riders couples may be interested in considering include:

Accelerated death benefit rider. With this rider, you can take money from the death benefit to pay your medical expenses in case of terminal illness. It can also cover end-of-life care such as hospice care or living in a nursing home.

Critical illness insurance rider. This type of rider pays out accelerated benefits while you’re alive to cover treatment for certain illnesses specified in your policy that could limit your life expectancy and leave you with unaffordable medical bills.

Spousal insurance rider. This is a family insurance rider that ensures you’ll receive a death benefit if your spouse dies. It can help cover the costs of household labor, like childcare, even if your spouse isn’t the primary breadwinner.

When you’re purchasing your life insurance policy, your agent or broker can help you determine what life insurance riders you need.

What is the difference between life insurance and spouse life insurance?

The best spouse life insurance will be a policy that offers the most comprehensive coverage for a competitive price and is easy to be approved for. For most couples, regardless of their marital status, buying two separate life insurance policies will provide that option. Each spouse can purchase the policy that offers the best premiums and benefits based on their health, gender, age, and lifestyle, and then name their spouse as their primary beneficiary.

Joint life insurance — a policy that covers both spouses — on the other hand, is a unique option for couples, and in some particular cases, it can be the right choice. However, separate life insurance policies are more popular because they are cheaper and offer more robust coverage for couples. Plus, in case of a divorce, splitting up joint policy can get tricky.

A joint policy “is rarely a good idea,” says Policygenius senior sales associate Warren Robbins. By buying separate policies for you and your spouse, you ensure each of you is getting the best premium rates for your specific health profile, age, and gender. With a joint policy, you could end up paying more to accommodate one person’s older age or health status.

Separate life insurance policies

Life insurance companies don't do buy-one-get-one-free deals, so purchasing separate life insurance policies at the same time won't save you money. However, buying separate policies tends to be less expensive policies because each policy is tailored to each spouse’s individual needs. For example, you may want the breadwinner to have more coverage than a stay-at-home spouse, or you may want only one person to have riders that offer extra provisions, like early access to the death benefit.

Married couples and domestic partners purchasing separate life insurance policies can save time by scheduling a joint medical exam.

Joint life insurance policies

A joint life insurance covers two people and is usually a type of permanent policy. This type of policy tends to be more costly than individual life insurance.

Joint life insurance is only available to married couples or domestic partners. This type of policy may make sense in specific situations, such as if one spouse’s health prevents them from getting their own life insurance policy. However, this will result in higher premiums for the spouse in better health.

What are the two main types of joint life coverage?

There are two joint policy options available: first-to-die or second-to-die.

First-to-die joint policy: The policy pays out upon the death of the first policyholder. If the surviving spouse wants more coverage, they’ll need to apply for a new policy.

Second-to-die joint policy: Also known as survivorship life insurance, this policy doesn’t pay out until both policyholders are deceased.

How does joint life insurance work?

Most joint policies are permanent life insurance policies, which last your entire life and have an investment-like cash value feature that earns interest. Joint term life insurance policies, which expire after a set period, do exist but are less common.

First-to-die joint policies are usually best for people with expenses supported by one spouse; people with large debts, like a mortgage; or young families. First-to-die life insurance is the closest option you’ll find to an individual life insurance policy. It helps the surviving spouse cover expenses after the loss of the financial support provided by the spouse who passed away.

Second-to-die policies pay out the death benefit only after both policyholders die, so it’s not intended to replace family household income. Second-to-die policies are best for couples who intend to use the policy proceeds as part of a estate planning portfolio — the cash value can be used to cover estate taxes, leave a nest egg for the couple’s heirs, or pay inheritance taxes.

A policy that covers both spouses can be a good option in very specific scenarios. Most couples, however, will benefit from purchasing two separate individual life insurance policies.

The best life insurance for married couples and domestic partners will depend on the individual circumstances, so you should talk to a licensed expert about whether separate policies or a joint policy is right for you and your spouse.

Is my spouse automatically my life insurance beneficiary?

You can designate your spouse as your life insurance beneficiary, — but you have to specifically name them as such in your policy. Marital status doesn’t entitle anyone to automatically become a beneficiary on their spouse’s life insurance policy.

Supplemental spouse life insurance

If you work, you may be able to get some spousal coverage through your employer’s supplemental spouse life insurance. This is useful to increase existing coverage or can be helpful if your spouse doesn’t qualify for a traditional policy.

Supplemental coverage from group life insurance is an addition to the base coverage included in some employer benefits packages. The supplemental coverage can usually be bought for yourself, your spouse, or your dependents.

A few caveats apply:

Employers can limit the amount of additional coverage available.

You lose supplemental spouse coverage if you leave your employer.

Your spouse may be asked medical questions and can be denied coverage.

Because of the connection to your employment status and other potential restrictions, it’s best to treat supplemental insurance as a complement to your existing life insurance plan.

Best life insurance companies for couples

Banner and Protective are two of our top choices for life insurance for couples. Both insurers offer very competitive rates, long terms, and supplemental riders that can meet the coverage needs of most spouses or domestic partners.

How spouses can shop for life insurance together

After you and your partner determine how much life insurance you need, the rest of the buying process is the same as it is for single shoppers.

Determine how much life insurance you need as a coupleBy figuring out the right amount oflife insurance you need and a term policy’s length that makes sense for your family, you can avoid overpaying for coverage.

Choose a beneficiaryMost spouses shopping together choose their partner as the primary beneficiary, though you also have the option of choosing your children or even an institution.

Consider community property lawsIf you live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin, you need your spouse’s consent to name someone other than them as your beneficiary.

Decide between term or whole life insuranceA term life insurance policy offers coverage for a specific period of time, anywhere from 5 to 40 years, while a permanent life insurance policy lasts your entire life.

Pick the right life insurance companyThe health status of both you and your spouse will likely determine what life insurance company you purchase your policy from. Some are better than others at accommodating health conditions like diabetes or high cholesterol and providing lower premiums for applicants with those conditions.

Can you take out a life insurance policy on your spouse?

One final consideration: Can you buy a life insurance policy for your spouse without their knowledge or vice versa? Not legally.

To get a life insurance policy, the insured person must physically take the life insurance medical exam. Even with a no-medical-exam life insurance policy, your spouse must sign for the policy and give consent. Signing for the policy on your partner’s behalf — or anyone for that matter — is considered life insurance fraud and has serious consequences.

However, if your partner is willing to participate in the underwriting process and is willing to sign off on the policy, you can still take out a life insurance policy on them and pay the premiums. To do so, you’ll still need to prove insurable interest (proof that you would be financially burdened if they die).

Married couples rely on one another in many ways, especially financially. Spouses looking for life insurance and financial protection have a few more considerations to make, such as how long each person wants their policy to last, who they need to provide for, and whether a joint policy is right for them.

Life insurance and domestic partnerships

If you’re in a domestic partnership or civil union, you probably share bills, a mortgage, and dependents, and require the same amount of coverage and benefits as married couples. As long as you can prove insurable interest, you’re eligible to get a policy and list your domestic partner as your beneficiary in the same way as a married person could.

If you’re not legally married, you are still eligible for life insurance coverage but may be asked additional questions during the underwriting process to demonstrate financial interest. Life insurance companies look for financial justification for getting life insurance coverage to lessen the chance of fraud.

Essentially, if you can demonstrate to the underwriter that your beneficiary will incur a financial loss if you die, you shouldn’t have a problem getting life insurance coverage — there just might be some extra paperwork.

Credits to: Nupur Gambhir & Rebecca Shoental

Date: May 11, 2022

Source: https://www.policygenius.com/life-insurance/life-insurance-for-spouses/

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halcyondaysforyou · 3 years ago

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Life Insurance: A Key Piece of Protection for LGBTQ Families

If you’re LGBTQ, you may be fully exploring what it means to be able to build your life around who you love. Strong legal protections in the last 15 years have ushered in more than just external changes. According to MassMutual financial advisor Mindi Wernick with Lee, Nolan & Koroghlian in New York City, these protections have provided validity and certainty, creating an important psychological shift.

“Now that gay couples are seen in the eyes of the law as equal, they can build their lives around who they love,” she says. “They’re joining finances, and doing more traditional things, like buying life insurance.”

The big shift in life insurance for the LGBTQ community

“Previously, life events like getting married and having children were coming up more often for straight couples,” says Tyler Sweigart, a State Farm agent in Washington, D.C. “Now things are changing where we have gay marriage, adoption and surrogacy. We ask about life events with every single customer.”

Even so, according to LIMRA, just 38% of LGBT households own individual life insurance, compared to 44% of the general population. The reasons are deeply historical and often gender-specific.

A stubborn challenge

Life insurance has to do with “money, mortality and who you love, all in one conversation. That’s hard to begin with,” explains Wernick. Historically, LGBTQ people have found this especially challenging. Not long ago, disclosing sexual orientation to the wrong person could be career-ending. “Some of my clients today are still closeted,” she adds.

Hand in hand with this reality: a significant lack of LGBTQ representation in the financial services space. Wernick, mother of three sons with her now-wife and partner of 23 years, reports that she is the only gay woman she knows of in her wealth advisory firm, in an industry where just 24% of the sales force is female. Many gay consumers, especially women, she says, feel “no connection” with a typical insurance agent.

As a result, “LGBTQ people come to the party kind of late, and that’s when coverage is more expensive.” The price of life insurance depends on your age and health, among other factors. The younger and healthier you are, the lower your rate.

The double whammy for lesbian couples

Earning disparities and common gender-based attitudes around money tend to hold women back financially, which can be exacerbated for lesbian couples, says Wernick.

“Women are primed to be proactive about their health. Men are proactive about their wealth. They measure themselves by how much money they have. Women often don’t take their financial lives seriously enough, early enough. We measure ourselves by different standards — by the quality of our relationships, by how much time we spend volunteering, by how much we nurture our talents, by how often we’ve used our Peloton.”

What surprises everyone about life insurance

Gay or straight, however, Wernick says, “I think everyone is surprised at how cheap term life insurance is.” Consumers overestimate the cost of life insurance by up to five times the actual amount, according to the 2021 Insurance Barometer Study, by Life Happens and LIMRA. In fact, a healthy 30-year-old can get a $250,000 20-year level term policy for about $13 a month.

In addition, “Permanent life insurance is an asset that many people don’t realize has dual benefits,” says Sweigart. “It’s a way to transfer wealth, there’s an opportunity to grow cash within the policy, and there are lot of great things you can do with it come retirement.”

Finally, many in the LGBTQ community don’t realize coverage is now possible today for those who are HIV positive, and for those who are transgender.

Protecting hard-won gains

Today, LGBTQ people live in a world hard to imagine just a couple of decades ago. Life insurance can help protect hard-won gains and provide living benefits.

“Seek somebody out that you feel comfortable with and you feel is a good fit. Look for an organization that’s financially stable and strong,” says Sweigart. “And shop around for coverage that works for you. There’s a policy that’s right for every situation. If price is a critical question, something is better than nothing.”

Finally, he says, if you’re HIV positive or transgender, “Don’t be discouraged to apply.”

“It’s getting better out there,” says Wernick. “You can’t be fired for being out, so we’re better able to take care of each other and build a life now. People are coming out younger, so they’re partnering younger and having families. So the trends are moving in the right direction, and gay people are seeing that they need life insurance just like any other couple.”

Credits to: Erica Oh Nataren

Date: June 23, 2021

Source: https://lifehappens.org/blog/life-insurance-a-key-piece-of-protection-for-lgbtq-families/

#lifehealthadvisors #areteautomation #ethos #future #musthaves #foryou

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halcyondaysforyou · 3 years ago

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10 Things Women Need To Know About Life Insurance

Women: It’s time for you to close the gender gap in life insurance ownership. Just 47% of women have life insurance coverage versus 58% of men, according to the 2021 Insurance Barometer Study by Life Happens and LIMRA, insurance industry groups. Yet women are just as likely to need life insurance as men.

“It’s important for women to realize the contribution they make to their households and to have financial protection in case something happens,” says Brittney Burgett, head of communications at Bestow, an online life insurance company. “If you have people in your life who rely on you for their well-being, you’re generally going to need life insurance.”

So if you don’t already have life insurance or don’t have enough, here’s what you need to know.

Life Insurance Is Cheaper for Women Than Men

Fortunately, the pink tax doesn’t apply to life insurance. In fact, it pays to be a woman in this case.

“The price of life insurance is based on actuarial data,” Burgett says. “Statiscally, women live longer than men and are more likely to live past a [life insurance policy’s] term length. That is why coverage is generally more affordable for women.”

For example, the average monthly cost of a 20-year term life insurance policy with a $500,000 death benefit for a healthy 35-year-old woman who doesn’t smoke is $25.23, according to Policygenius. The average cost of that same policy for a healthy 35-year-old man who doesn’t smoke is $30.03 a month.

Be aware that opting for a term life insurance policy rather than a permanent policy is a more affordable way to get coverage. Plus, buying sooner rather than later will help you get cheap life insurance because the cost will go up each year you wait to apply. Also, waiting to apply is risky because you could develop a health problem that will affect your life insurance quotes.

Don’t Assume Coverage You Have Through Work Is Enough

Taking advantage of a group life insurance benefit through work can be a low cost—or even free—way to get coverage. But you need an individual policy as the foundation of your life insurance plan. Usually you can’t keep supplemental life insurance through work if you leave the job.

“If you have a need for financial protection, you want to always have that protection in place,” Burgett says.

Plus, the amount of life insurance you can get through work is typically equal to only one or two times your annual income. That won’t be enough to cover your life insurance needs, especially if you own a home or have children, Burgett says.

To calculate how much life insurance you need, add up the debts and expenses you want to cover, such as a mortgage or college tuition for your kids. Subtract the amount you already have to cover these costs, such as existing life insurance and college savings. The difference is an estimate of how much life insurance you need. You also can use the Life Happens calculator to get a good estimate.

You Need Life Insurance Even if You’re Not a Breadwinner

Even if you don’t bring home a paycheck, you need life insurance if you are a stay-at-home mom. That’s because you provide substantial support for your family that your spouse or partner would have to pay to outsource if something happened to you. A life insurance payout would help cover those costs and provide a financial safety net to your family.

Don’t worry: You can get life insurance even if you don’t have an income that needs to be replaced. “Insurance companies recognize there is a value to having a stay-at-home parent,” says Erin Ardleigh, founder and president of Dynama Insurance, an independent insurance brokerage in New York. She says she hasn’t had trouble getting coverage—even large amounts—for clients who are stay-at-home parents.

You Can Apply for Insurance While Pregnant

It’s a big misconception that women can’t apply for life insurance while pregnant. Ardleigh says she has had clients apply during their eighth month of pregnancy and still qualify for the best life insurance rate class.

It also can be a big mistake to wait until after pregnancy to apply for coverage, Ardleigh says.

That’s because women can develop conditions during pregnancy, such as gestational diabetes, or conditions after giving birth, such as postpartum depression, that can make it harder for them to get coverage or get a good rate.

Plus, once you have a baby, “the last thing you want to think about is paperwork and doing an insurance exam,” Ardleigh says. “This is something you can take care of before you have the baby.”

Don’t Let Health Issues Prevent You From Applying

Pregnancy aside, you might have health issues that you’re afraid will prevent you from getting coverage or will make it too expensive. For example, say you had breast cancer and assume that no insurer will sell you a policy. The good news is that it is possible to get life insurance after cancer—or if you have other medical conditions.

The key to getting coverage when you have health issues is to find a qualified independent insurance broker. Independent brokers work with several insurance companies rather than just one and know which ones are more willing to insure special cases or offer a better rate to people with your health condition. For example, Ardleigh says she had a client who had postpartum depression and was declined for coverage when she applied in the past with just one insurance company. Ardleigh was able to get her client coverage at a good rate by identifying insurance companies that were sympathetic to her medical history.

Getting Life Insurance Can Be Fast and Easy

“What makes buying life insurance now easier than it’s ever been before is how quick and easy it is to get it if off your to-do list,” Burgett says. More and more companies are using a process called accelerated underwriting that can make it possible, in some cases, to get approved for coverage in a matter of minutes and without a life insurance medical exam.

Bestow, for example, has a term life insurance product that is 100% digital, never requires a medical exam and can take less than 10 minutes to apply for and get approved. There are several other online insurance companies that also offer fast life insurance, including Fabric, Haven Life and Jenny Life.

Even though you might be able to get coverage quickly, don’t make a rushed decision when it comes to buying life insurance, Ardleigh says. Get life insurance quotes on a couple different life insurance products from at least three different companies. And be aware that if you use an independent broker to do the comparison shopping for you, the process still can be relatively quick and might not involve a medical exam if you’re healthy.

Be an Educated Shopper

If you enjoy comparison shopping, put your savvy shopping skills to use when looking for a life insurance policy. In addition to comparison shopping to find a good rate, make sure you understand the products you are comparing.

For example, term life insurance will provide the most coverage for the least amount of money, but it’s a bad choice if you really need a permanent life policy such as universal life insurance.

Do your homework before shopping for a policy. “Never buy something you don’t understand,” Ardleigh says.

Don’t Just Choose a Brand You Know

It might seem smart to stick with the same insurance company that provides your auto or homeowners insurance. Or maybe there’s a company you’re familiar with because you’ve seen its ads or your best friend has recommended it.

Sticking with a brand name you know can be a mistake, though, when it comes to buying life insurance.

“Just because you’ve heard of the company before doesn’t mean the product it has is the right fit for you,” Ardleigh says. You want to find the right life insurance company with the right product at the right price for you. If you use an insurance quote website to get quotes from several companies, don’t write off companies that aren’t familiar to you. They might offer better rates than the brand you know, have a stronger financial rating and have better customer service.

What Works for Your Spouse Might Not Work for You

It might be tempting to base the type and amount of coverage you get on what your spouse or partner has. But that might not be the right solution for you.

Ardleigh says that often the reason her female clients had bad experiences with life insurance before coming to her was because they bought the same policy their spouses had.

“Insurance is highly personalized,” she says “Don’t assume that what is a fit for your husband is the right fit for you.”

Don’t Buy Life Insurance for Your Kids

Watch out if you’re getting the hard sell to buy life insurance for your children, or if you feel compelled to protect them with coverage of their own. This is rarely a good idea, Ardleigh says.

Life insurance policies for children typically are whole life policies that are touted as a way to build cash value that your children can access when they’re older to, say, help pay for college. Life insurance isn’t an ideal savings vehicle, though. “If you want to help your kids have savings, put money in a 529 plan for their college or open an investment account and teach your kids how to invest,” Ardleigh says.

Keep in mind, too, that your focus should be on buying enough coverage for yourself to provide a financial safety net for your loved ones if something happens to you. Your kids are counting on you for support, not the other way around.

Credits to: Cameron Huddleston, Amy Danise

Date: March 29, 2021

Source:https://www.forbes.com/advisor/life-insurance/what-women-should-know/

#lifehealthadvisors #areteautomation #ethos #musthaves #insurance #future

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halcyondaysforyou · 3 years ago

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Here's why LGBTQ+ adults wrestle with financial security

For many LGBTQ+ adults, planning for retirement, investing, and even budgeting are a struggle.

Almost two-thirds of LGBTQ individuals surveyed reported living paycheck to paycheck most of the time, according to a new Nationwide Retirement Institute survey of 1,000 nationally representative adult U.S. consumers and 1,000 members of the LGBTQ+ community. That figure jumps to 72% for Black LGBTQ+ members.

Moreover, LGBTQ+ survey respondents said that they were less knowledgeable than the general population about retirement planning (by 13%), estate planning (by 12%), and investing in the stock market (by 8%).

“The statistics are dire,” Manisha Thakor, a certified financial planner and founder of MoneyZen, told Yahoo Money.

The findings underscore the higher costs the community often faces from health care to parenthood at the same time that those individuals find their earning power curbed by biases in the workplace.

More than a third (37%) reported that their career had been negatively impacted due to gender identity or sexual orientation and almost half (46%) said their opportunities for career advancement have been negatively impacted, according to the survey.

“As a member of this community, for 16 years I hid my sexual identity out of fear of losing clients and also losing earning opportunities and promotions," Rona Guymon, senior vice president at Nationwide Financial, told Yahoo Money. “These challenges negatively impact LGBTQ+ individuals earnings potential, a problem that then compounds as they age.”

Health care costs, too, can take on career and future financial security. More than half (56%) believe that LGBTQ+ people experience higher health care and health insurance costs than non-LGBTQ+ people, according to the survey.

“Two vital areas — mental health and substance abuse — are often under-treated across the entire population due to stigma,” Thakor said. “Studies indicate that the LGBTQ+ community faces additional headwinds in the areas of mental health and substance abuse often due to environmental factors such as lack of family support, bullying, and social discrimination.”

That, Thakor said, could be “one component to the lack of retirement preparedness and emergency cushions.”

When it comes to parenthood, the financial picture can be challenging, too. Roughly half of LGBTQ+ Americans surveyed found saving to start a family (52%) more difficult for them compared to non-LGBTQ+ people.

“The LGBTQ+ community has to intentionally plan to have children, so they have to build in the fertility or adoption expenses in their planning,” Guymon said.

Paths to parenthood in the LGBTQ+ communities typically include adoption, surrogacy, and sperm donation — all of which can be accompanied by hefty price tags, Thakor said.

“Children are expensive, period,” Thakor said. “But kicking off parenthood with these additional outlays may likely be another reason for a late start to retirement savings and building an emergency fund.”

Her advice is to plan and save for these costs early on by being “extra aggressive in paying off high-interest private student loans or credit card debt.”

It’s not “rocket science,” Stuart Armstrong, a certified financial planner at Centinel Financial Group, in Needham Heights, Mass, told Yahoo Money.

“In the LGBTQ space, we have to make sure we don’t skip the basics of living within your needs, minimize your debt, and having good basic health and disability insurance,” Armstring said, “regardless of where we live, regardless of what pronoun we use, regardless of our marriage status.”

Core estate planning can make a huge difference

Despite the glum findings in the survey, financial well-being has improved incrementally for the LGBTQ+ community in recent years.

“I’m in my early 60s and my generation came of age during the AIDS epidemic,” Armstrong said. “There was no job protection or housing protection laws, and certainly no marriage equality. Today, a younger, emerging generation has been able to begin to look at their lives with more financial freedom and flexibility, although that hasn’t been around for a long time.”

That said, while marriage among LGBTQ people has been on the rise in the seven years since the Supreme Court ruling that legalized same-sex marriage, many couples are still lacking certain estate planning documents, Armstrong said.

“It’s critical that LGBTQ couples, particularly those who are not married, have a will and to update the beneficiaries on any financial accounts. If you plan to leave assets to your partner, it’s vital that you do these things to avoid probate and any possible clash with family.”

Meantime, a living will or health-care directive is essential for couples should one partner become incapacitated or fall ill.

“Having these documents is key for visitation, medical decisions, and custodial appointments for children,” Armstrong said.

Many couples, too, are unaware of the Social Security benefit rules for same sex couples, Laura J. LaTourette, a certified financial planner and founder of Family Wealth Management in Dahlonega, GA told Yahoo Money. Even if you were previously denied survivors benefits because you did not meet the marriage requirement due to unconstitutional laws, you can ask to reopen, or take another look at a claim, according to the Social Security Administration’s website.

Finally, less than four in ten LGBTQ+ Americans (37%) feel that financial advisors understand their unique challenges, the survey found. And seven out of 10 say they would feel more comfortable with an advisor or financial professional who is a member of the LGBTQ+ community.

About a third of LGBTQ+ members in the survey specified that increased representation of their community in the financial services profession (34%) would better support them in their personal finances and financial planning.

That’s easier said than done. “The CFP Board doesn't even track the LGBT community,” Georgia Lee Hussey, founder of Modernist Financial, in Portland, Ore, told Yahoo Money. “It's a concern.”

Most financial advisors and planners who specialize in working with the LGBTQ community clearly display this information on their website and other online profiles, Hussey said. Resources to find planners who work with the LGBTQ community work include XY Planning. You can also search the Certified Financial Planner Board of Standards for letsmakeaplan.com. Click 'LGBTQ Individuals/Couples' under the 'Client Focus' search option for a listing of the advisors who are LGBTQ-friendly.

“Being a lesbian, I look for ways to help my community,” LaTourette said. “As an advisor, that's what I do. I know the language. I know the rejection, and I understand some financial things that are very intimate to talk about, but you need someone you can trust and who is an ally.”

#lifehealthadvisors #areteautomation #ethos #future #investment

Credits to: Kerry Hannon

Date: July 01. 2022

Source: https://money.yahoo.com/lgbtq-adults-financial-security-173136932-175718396.html

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halcyondaysforyou · 3 years ago

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The Newlyweds' Guide to Life Insurance

It’s officially wedding season! As the US continues to open back up, it seems that everywhere you look someone is getting married, with a double whammy of postponed 2020 nuptials and regularly scheduled 2021 events kicking off.

If you’re one of the many couples getting married this year - or perhaps you’ve already tied the knot (congrats!) - chances are there are a few high priority life items on your list to tackle. While life insurance may not be the first thing on your mind post-wedding, it is definitely worth thinking about as you tie your futures together.

Marriage is a partnership

For most people, marriage is a commitment on many levels: emotional, ethical and spiritual just to name a few, but also financial and practical! For one, there are usually beneficial, fiscal implications to tying the knot. There is even a fancy financial term that describes the relationship between spouses (and business partners): you share an insurable interest, that is to say, one of you will suffer hardship if the other passes away. Having a life insurance policy will help to ensure your spouse is taken care of financially, should something happen to you.

Just married? Now’s a good time for life insurance

It can’t be overstated that the best time to buy life insurance is always “yesterday” or, failing that, “right now.” That is because the younger and healthier you are when you purchase your policy, the lower the rate you can get. This is all the more important as you and your spouse likely share great plans for the future: you might be looking to buy a house and raise kids. If you choose to combine your finances, you will also be sharing your debt. All the more reason to plan carefully.

At Ladder, we believe in making life insurance personalized, simple, and flexible. If you want to lower your coverage during the lifetime of your policy, you can decrease your coverage amount with just a few clicks or taps in the app, which decreases your premiums by the same proportion.

A quick look at joint life insurance

The insurable interest defined earlier is a prerequisite for a type of life insurance known as “joint life insurance.” Such policies can be “first to die,” i.e. pay out to the beneficiary when the first spouse dies, or “second to die,” i.e. pay out when both insured parties die. The former can be practical because it involves just one policy that ensures a payout for the other party regardless of circumstances. “Second to die” policies typically don’t involve spouses as beneficiaries, but instead protect extended family members like grandchildren. Most people won’t benefit much from joint life insurance, unless one spouse cannot be insured due to a health condition—in which case the policy is calculated based on the healthy spouse.

The benefits of separate policies

Ideally, we would recommend both spouses get a separate life insurance policy. Going separate, for one, ensures each policy is tailored to each spouse and their financial situation, not just now but also in the future. For instance, if you and your spouse decide to buy a house and get a mortgage together, one of you might take on the mortgage payments while the other covers the expenses of managing your household. You may also choose different life insurance policies that reflect your respective incomes to maintain the same standard of living for your significant other.

Credits to: Liana Corwin

Date: June 29, 2021

Source: https://finance.yahoo.com/news/newlyweds-guide-life-insurance-142738778.html

#lifehealthadvisors #areteautomation #ethos #couple #insurance

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halcyondaysforyou · 3 years ago

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Five Reasons Women Should Consider Life Insurance

Why It Matters:

Fewer women than men have life insurance policies.

Women may need life insurance more than men.

Many clients don’t know life insurance can have benefits for the living, too.

Back in the 1950s, shows like “I Love Lucy” and “Leave It to Beaver” depicted women as housewives completely dependent on their working husbands. Today, 57% of women in the U.S. participate in the labor force.

Yet, despite the fact that 49% of women are the primary breadwinners and 52% of women in a relationship are responsible for managing the money in the household, fewer women than men hold life insurance policies.

Your female clients may not know this, but they may actually need life insurance more than men. Let’s review some of the reasons why.

They’re going to live longer

Women’s lifespans are longer than men’s, so there will be a greater likelihood of medical needs as they age. Having a policy that accumulates cash value or has a rider for a chronic illness could provide financial support to cover medical bills, caregivers, and living expenses. And your clients might like this: since women generally live longer, life insurance policies for women are less costly than men’s.

They’re business owners

According to recent statistics, 11.6 million U.S. businesses are owned by women. They employ nearly 9 million people and generate more than $1.7 trillion in revenue. As more women become entrepreneurs, there needs to be a consideration for what happens to that business if they were suddenly gone. A life insurance policy could help provide money for a buyout if your client was a partner in the business. It can also provide funds for business continuation, business-related debt, company expenses, and payroll.

They’re more likely to be caregivers

Women, more than men, are likely to take on the role of caregiving for children or elderly parents. They can ensure their dependent can continue receiving care by making them a beneficiary on a life insurance policy. That way, there’s financial support to hire a professional to take over caregiving needs once the insured passes.

They may need it for an emergency

A financial emergency may strike at any time. Some life insurance policies build a cash value that can be borrowed against if your client suddenly needs cash. This money can be used to help their family or themselves in a bind.

Their family depends on them

Whether they’re financially supporting the household or providing stay-at-home duties such as child care, housekeeping, meal preparation, or transportation, life insurance can help by paying for service providers if your client passes away.

As part of your client’s larger financial strategy, life insurance can help provide the funds that may be needed during their lifetime or help their family or business partners continue on after they pass. Ask your client to consider the benefits and review the options available.

Things to Consider:

Ask your female clients if they currently have life insurance.

Let your clients know why women may need life insurance more than men.

Share how life insurance can benefit them now and in the future.

Source:https://www.transamerica.com/knowledge-place/five-reasons-women-should-consider-life-insurance

Date: December 12, 2019

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halcyondaysforyou · 3 years ago

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Life Insurance: A Key Piece of Protection for LGBTQ Families

The big shift in life insurance for the LGBTQ community

“Previously, life events like getting married and having children were coming up more often for straight couples,” says Tyler Sweigart, a State Farm agent in Washington, D.C. ��Now things are changing where we have gay marriage, adoption and surrogacy. We ask about life events with every single customer.”

Even so, according to LIMRA, just 38% of LGBT households own individual life insurance, compared to 44% of the general population. The reasons are deeply historical and often gender-specific.

A stubborn challenge

The double whammy for lesbian couples

Earning disparities and common gender-based attitudes around money tend to hold women back financially, which can be exacerbated for lesbian couples, says Wernick.

What surprises everyone about life insurance

Finally, many in the LGBTQ community don’t realize coverage is now possible today for those who are HIV positive, and for those who are transgender.

Protecting hard-won gains

Today, LGBTQ people live in a world hard to imagine just a couple of decades ago. Life insurance can help protect hard-won gains and provide living benefits.

Finally, he says, if you’re HIV positive or transgender, “Don’t be discouraged to apply.”

Credits to: Erica Oh Natanen

Date: June 23, 2021

Source: https://lifehappens.org/blog/life-insurance-a-key-piece-of-protection-for-lgbtq-families/

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halcyondaysforyou · 3 years ago

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Gender Pricing: Why Women Pay More

It's expensive to be a woman in this country. Collectively, we fork over $426 billion a year on our hair, nails, and beauty products. But glamour aside, for services that we all need - like insurance, housing and healthcare, - women are still paying more than men.

I tapped Lea Goldman, Features and Special Projects Director at Marie Claire Magazine, whose article, "Why Women Pay More" exposes the harsh realities of price discrimination.

"The state of California found, on average, that women were paying a mark-up of about $1,351 that men weren't having t pay for the same goods and services," she says. "We looked at women cross the country...and found that on average women pa $151 billion in extra fees and markups that men don't have to pay."

Some of those marked up items include everyday toiletries, such as disposable razors, shaving creams, shampoos and soaps - all dressed in prettier packaging, but functionally identical to those sold to men. According to one study, researchers examined 200 deodorants sold at major drugstore chains and found that deodorant for women cost, on average, 30 cents more per ounce - and the only difference was the scent.

Some dry cleaners, too, appear to take part in price favoritism, charging slightly higher prices to clean a woman's shirt. According to Goldman's research these dry cleaners claim our tops are more labor intensive to clean and require special machinery.

And the list of perpetrators goes on.

Women have long been aware of unfair price discrimination in the hair care industry, though we seem to voluntarily buy into this practice, spending twice total what men do on their hair. Salons say the time and the artistry involved in a women's mane more than justifies a 10-50% mark-up but then, is it fair to charge more if you have, say, Justin Bieber's, haircut?

Now, many will argue that it's, in fact, men who face price discrimination. For example, some establishments charge more for a man-icure or a man's wax because, they claim, men's grooming takes more time and effort.

This is similar to the reasons a salon might charge more for a woman's hair cut, or a dry cleaner charges more for a woman's shirt: it's simply more work, they say. In fact, what appears to be discriminatory pricing is really just the cost of doing business. So why all the fuss?

Goldman says it's because these price differentials spread much further than just the cost of errands and grooming. "The big ticket items that women pay more for include everything from mortgages, health insurance, life insurance, home repairs, car repairs, across the board all the biggest big-ticket expenses in your life you'll probably pay more for than men," she says.

Perhaps it's no more apparent than in the health care industry where 92% of the top insurance plans charge women more - and that doesn't include maternity services. Starting in 2014, under the Affordable Health Care Act fourteen states have banned gender rating. But in states that haven't made changes, glaring price discrepancies still exist. In Kentucky for example, a healthy woman pays 14% more than a smoking male for the exact same coverage. In Florida, women pay over a thousand dollars more per year in health care premiums; This is because they often have to pay extra to cover inadequate maternity coverage, or take on the brunt of maternity care on their own, an average of $9,600.

These are huge financial burdens with lasting consequences. Let's not forget, too, that women still make less than men, 74 cents for every dollar her male counterpart earns. So how are businesses getting away with this?

There is no federal law banning gender pricing so across the country it really varies by state to state and also by city to city

As a consumer, here's how you can fight back:

First, refuse to patronize businesses that blatantly discriminate. By letting the company know you'll be going elsewhere because of their unfair price differences, it may be enough to get their attention. Maybe they'll change their ways or, at the very least, try to win back your business

Next, no one says you have to pay more for women's products: If it costs less and does the same thing, who cares if you use a man's deodorant or shaving cream? If the fragrance is an issue, get the kind for sensitive skin, which is usually scentless.

Comparison shop. This may sound like an obvious tip, but Goldman says women tend not to be as aggressive in this area as men, especially when it comes to mortgage rates and cars.

Finally, if you suspect you're being charged differently because of your gender, report it. "Contact your local representative be it a mayor, congress person, let them know that you're not okay with it, give them specific examples in an email and letter so they know what they can investigate.

Credits to: Farnoosh Torabi

Date: February 7, 2013

Source:https://www.yahoo.com/lifestyle/tagged/health/author-blog-posts/gender-pricing-why-women-pay-more-032900640.html

#lifehealthadvisors #areteautomation #ethos #women

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halcyondaysforyou · 3 years ago

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Does Being Transgender Affect Life Insurance?

Shopping for life insurance requires time and research to ensure you’re getting the best policy to fit your needs. But as a transgender individual, the process can be a bit more complex.

Do transgender people have to get special life insurance? And what is the best life insurance for transgender people? Below, we examine these questions and everything else you need to know about transgender life insurance.

Does Being Transgender Affect Your Ability to Get Life Insurance?

Being transgender in and of itself has no impact on life insurance underwriting, according to Ryan Pinney, president of Pinney Insurance Cente. You shouldn’t be denied a policy or charged a different rate simply because you are transgender. However, some insurance companies still use sex assigned at birth to determine the policy’s rate rather than the person’s gender.

The reason is that they base their risk assessment or underwriting on mortality, Pinney says, which is strongly tied to sex.

“For example, an individual assigned male at birth transitioning to female still has a prostate, which poses an increased risk for prostate cancer later in life, and individuals assigned females at birth still have an increased risk for osteoporosis,” he explains. Further, men generally have a lower life expectancy than women and usually pay higher life insurance rates.

Today, however, many life insurance companies will accept the gender the applicant identifies with, according to Jeremy Hallett, founder and CEO of Quotacy. The exact underwriting requirements vary by insurer. For instance, a few life insurance companies surveyed by Quotacy will use birth gender unless it’s been a minimum of three years since completing gender reassignment surgery, in which case it will consider the applicant’s current gender. Other companies surveyed said they would simply recognize the gender the applicant identifies with.

Life Insurance for Transgender People Who Have Already Transitioned

Pinney says that being transgender generally has no additional risk from a life insurance perspective, “but insurance companies will use your personal medical history to make any additional decisions.”

Hallet adds that care is taken when evaluating mental health and the effects of hormone therapies, which can affect insurance pricing. For example, transgender individuals are at a higher risk for depression, anxiety disorders and suicide than cisgender people. So insurance companies will want to review your medical history in detail to determine how any diagnoses and treatment history could impact your life insurance cost.

It’s important to note that a gender dysmorphia diagnosis is not considered a mental illness and shouldn’t impact life insurance rates. That said, each insurance company will evaluate this information on a case-by-case basis and may request a more thorough assessment by medical professionals.

Life Insurance for Transgender People Who Are Transitioning

Acquiring life insurance can be a bit more complicated if you’re in the process of transitioning.

“Most, if not all, insurance companies will postpone offering coverage if any gender-affirming surgeries are pending until after the completion of the surgery and recovery,” Hallet says.

That’s because there’s an inherent risk associated with surgery of any kind. Since life insurance companies are tasked with evaluating mortality risk, they will want to wait until after you’ve recovered from surgery before issuing a policy to ensure there aren’t any complications. So if you have a gender-affirming surgery scheduled for the future, you probably won’t be approved for a policy until surgery is completed.

In some cases, you may be required to provide an attending physician’s statement (APS). This is a letter from a doctor that provides a professional assessment of your health and additional context or details about a medical condition. It’s often needed for life insurance applicants undergoing specialized medical treatments.

If you’re worried about a delay in getting covered, the good news is that you may be able to get temporary life insurance to fill the gap. This covers you during the period between applying for a policy and getting approved. In other cases, the insurance company may backdate your policy.

Dealing With Discrimination When Applying for Life Insurance

Though life insurance companies are supposed to evaluate all applicants equally, discrimination can happen.

There are federal laws that specifically protect transgender individuals from discrimination relative to health insurance, Hallet says. Life insurance, on the other hand, is less clear. And the protections in place vary by state. Some have clear anti-discrimination laws in place, while others institute protections that may or may not include life insurance. Fortunately, more laws are being introduced to ensure transgender life insurance applicants are treated fairly.

For example, Hallet says the state of Delaware has current penalties to protect against unfair discrimination in the value of insurance policies and premiums based on race, color, religion, sexual orientation, gender identity or national origin. “Gender identity” is defined as “a gender-related identity, appearance, expression or behavior of a person, regardless of the person’s assigned sex at birth.”

New Jersey has a bill prepared for the 2022 session to prohibit unfair discrimination in issuing or rating life insurance policies based on transgender status or certain gender identity information.

That means choosing the right insurance company is key.

In a 2022 survey of more than 500 members of the LGBTQ+ community conducted by Bestow, it is clear that the LGBTQ+ community prioritizes end-of-life planning, with 63% of respondents having life insurance, a will or long-term care insurance.

“If you’re transgender, it’s important to work with an agent or broker who has access to many companies and can help transgender individuals navigate the underwriting process most effectively and efficiently,” Pinney says. “The best advisors and brokers will understand the transgender community, be able to provide rates from multiple companies, and advise which companies and products individuals should select.”

Credits to: Casey Bond

Date: August 10, 2022

Source: https://www.forbes.com/advisor/life-insurance/transgender-life-insurance/

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halcyondaysforyou · 3 years ago

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8 Reasons Women Should Get a Financial Advisor Right Now

It’s been tough for everyone trying to hold onto their jobs during the pandemic, but it’s been especially hard on women. Four times as many women as men dropped out of the labor force in September alone — roughly 865,000 women compared with 216,000 men, according to research from the Center For American Progress. The Washington Post wrote in late July that the coronavirus crisis has set back an entire generation.

This doesn’t bode well for women’s financial futures. And while a financial advisor can’t singlehandedly repair the damage of the pandemic and its mishandling, they can help us navigate our way out of this mess we did not cause. Even if you weren’t displaced in your career by the pandemic or the accompanying recession, women should feel encouraged to look into retaining a financial advisor for a variety of reasons including the advancement of women at large. The financial industry has improved, but it’s still something of a boys club. According to the Bureau of Labor Statistics reports that women represent just 31% of U.S. financial advisors. Only 23% of women are CFP professionals.

It’s high time that women crashed this stag party once and for all — especially now that COVID-19 has cost many women their careers. GOBankingRates talked to a number of women advisors to learn the top reasons why women should seek their services now.

Women Live Longer Than Men

Women have a longer life expectancy than men, and this pattern holds even in cases of COVID-19, with research showing that more men are dying from the virus than women. For this reason alone, women need to have a firm grip on their financial situation.

It might sound bizarre to younger generations, but a 2018 report from UBS found that 56% of married women leave investment and long-term financial planning decisions to their husbands, while 85% of wives believe their spouses know more about financial matters than they do.

"Women need to be able to understand their finances and be able to provide for themselves," said Tricia Rosen, CFP, principal, Access Financial Planning, LLC. "The right financial advisor can help women plan for their retirement years with confidence."

Women Might Benefit From Career and Negotiation Coaching

A report from staffing firm Randstad US, published earlier this year, found that 57% of women say they’ve never negotiated with an employer over pay. A financial advisor can help lay out the big picture around what you could and should be earning in your job — and how to get what you’re worth. This could be quite useful if you’ve had to take time off during the pandemic and are now looking for a new position.

"The right financial advisor would be able to be an independent sounding board for career-related decisions, especially if the financial advisor has other clients in the same industry," Rosen said.

Women Are Better Investors

"Women on average are more successful investors than men because they are more thoughtful and less reactionary with their decisions, however, because men are on average greater risk-takers, men are more likely to participate in investing to begin with than women," Rosen said. "The right financial advisor can help a woman feel confident in getting started investing which will enable her to have greater financial successes. A little bit of knowledge can have a significant impact on a woman’s confidence when it comes to getting started with investing."

Women Whose Partners Control the Money Need Insight

"The right financial advisor can help a woman feel like an equal partner in the financial management of their household," Rosen said. "Oftentimes one partner will manage the finances and the other partner will not be aware of what decisions are being made or why they are being made. The right financial advisor will take the time to help the less confident partner understand the jargon, terminology and the pros and cons of their financial decisions."

New Moms Must Update Their Financial Policies

Whether they continue working, stay at home or do a combination of both after having a child, it’s critical that women reexamine their life insurance policies and other financial planning, said Kateri Turner, CFP, financial advisor, GEBA Wealth Management.

"Consider that just 56% of women have life insurance," Turner said. "The costs of raising a child – last reported at averaging $233,610 through the age of 17 – falls on both moms and dads; even if you already have a plan, a new baby means it’s time to reevaluate your policy’s size, scope and beneficiaries."

Now Is the Time To Update Estate Documents

Death is often regarded as a taboo and morbid topic, but we are living through a pandemic and a lot of people are dying when they weren’t planning on it. In the event that “something bad should happen," as the saying often goes, it’s important that your wishes for your estate are met. This is of vital importance if you have children or pets, and a financial advisor can help you navigate the correct paperwork to make sure your wishes are fulfilled.

"The right financial advisor will let a woman know when she has risk in her financial life that she may not be aware of," Rosen said. "For example, if she doesn’t have estate documents in place but she has minor children, the courts will decide who would care for the children in the event the parents died prematurely." It may not be the same choice the parent(s) would make, but estate documents would make sure her wishes were followed.

Women Are More Likely To Put Their Work on Hold for Caregiving

"Women tend to be more willing or more able to interrupt their earnings and 401(k)s to take care of children and loved ones, so we wind up with less retirement money by the age of 65," said Pam Krueger, founder and CEO of Wealthramp. "In fact, three in five caregivers (61%) are women, according to the latest AARP and National Alliance for Caregiving report."

You’ll Walk Away With a Map To Meet Your Long-Term Financial Goals

Ultimately, a financial advisor’s job is to give you a holistic understanding of how money plays a role in all parts of your life and how you can best take control of the reigns. The learnings you gain from a financial advisor should help empower you to feel confident about your financial situation, both in the present and the future, while inspiring you to stay focused on your goals.

"The right financial planner will help a woman get a comprehensive, big picture view of her goals and how to take steps to meet those goals," Rosen said. "It’s easy to get caught up in the day to day and lose track of longer term goals, but studies have shown that intentionally creating a goal increases your chance of successfully meeting that goal."

Credits to: Nicole Spector

Date: June 30, 2021

Source: https://finance.yahoo.com/news/8-reasons-women-financial-advisor-190058592.html

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halcyondaysforyou · 3 years ago

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Women Are Overwhelmingly Falling Down in This Financial Area

Whether they hold down jobs or take care of the household, women contribute to their families' financial well-being in many ways. As such, they need to protect their loved ones by securing life insurance.

Yet 43% of U.S. women don't have a life insurance policy in place, and among those who do have one, many are underinsured. Furthermore, despite the fact that women make up 57% of the U.S. labor force, they carry 31% less life insurance than their male counterparts.

If you're currently without a life insurance policy, it pays to explore your options for getting coverage. And the sooner you do, the better.

Why you need life insurance

Life insurance isn't gender-dependent. Essentially, you need life insurance if you have people in your life who depend on you financially or who stand to suffer financially if you were to pass away.

Imagine you're married and earn $60,000 a year and your income is used to help cover the mortgage, feed your kids, and pay for life's many expenses. Would your spouse manage to foot those bills alone if that income of yours were to go away?

Even if you don't earn money, it pays to secure life insurance if your passing would negatively impact your family's finances. Let's say you don't work, but rather, stay home to watch your two children so that your spouse can work. Let's also assume that it would cost $30,000 a year to put your children into a day-care center. If you were to pass away, your spouse would have no choice but to bear that expense in order to keep his or her job. And that could constitute a major financial blow for your family.

That's why you absolutely need life insurance, even if your contributions to your household aren't financial in nature. And the earlier in life you apply for coverage, the greater your chances of not only getting approved, but snagging a more favorable rate on your premiums.

The right life insurance for you

Not all life insurance is created equal, so your goal should be to find a policy that meets your family's financial needs at a price you can afford. Life insurance can be broken down into two main categories: term versus permanent. As the name implies, term life insurance only covers you for a specific period of time. Once that term runs out, you get no money from your policy if you don't pass away during your coverage period -- which is technically a good thing, since it means you lived.

Permanent life insurance, by contrast, covers you forever. It also accumulates a cash value, which you can choose to borrow against or even surrender and cash out later in life if the need or desire arises. Though permanent life insurance offers more comprehensive coverage, it tends to be much more expensive than term life insurance, so that's a factor you'll need to consider.

You'll also need to determine how much of a death benefit you want your family to receive, keeping in mind that the higher that number, the more you'll pay. You might select a death benefit equal to a certain number of years times your current salary. For example, if you earn $60,000 a year and want to provide your family with a decade of earnings, you'd get a $600,000 policy. If you don't work, you might figure out the cost of child care times the number of years you'd need it for, and go with that number.

If you're not sure how much coverage to secure, it pays to consult with a financial advisor who can inquire about your family's needs and goals to help you nail down that number. Either way, life insurance is one thing you don't want to put off, because if tragedy strikes and you're uninsured, your family's suffering might compound exponentially.

Credits to: Maurie Backman

Date: March 8, 2019

Source: https://finance.yahoo.com/news/women-overwhelmingly-falling-down-financial-131700686.html

#lifehealthadvisors #areteautomation #ethos #future #foryou

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