Term Life insurance ownership has been slowly declining for several decades. According to a survey of U.S. residents in 25 major U.S. cities conducted by Allstate in conjunction with LIMRA International (a leading life insurance marketing association), the average amount of life insurance coverage respondents have is $175,000.
As a multiple of household income, this means the average respondent indicates that they have individual life insurance coverage equal to about four times their household income.
However, according to a recent LIMRA report, the average recommended life insurance need is about $459,0001. Inadequate coverage can put a financial burden on dependents of those who die prematurely. A general rule of thumb is to buy an amount that is equal to seven times your salary. However, each family is different.
The age of your children, the amount of your mortgage, debt and living expenses, and other factors, should all be carefully evaluated as you determine the amount to buy.
Allstate’s survey also revealed that one fourth (25 percent) of respondents felt they needed more life insurance coverage. But why would people need more life insurance?
With the right amount of coverage, a spouse and family can maintain their current standard of living after the passing of a loved one; funds can be used toward a child’s education and the proceeds can cover mortgage payments, debt payments or funeral expenses.
If your employer provides life insurance coverage, keep in mind that it may not be enough for your family to maintain their standard of living and fund their future financial goals. And you may not be able to take your life insurance policy with you if you change jobs.
http://www.texastermlife.com/
Life insurance can be a cornerstone of a solid financial future. Now that you know how important having life insurance can be; what steps can be taken to help build financial security?
Help protect what’s yours
One way to think about your financial needs is to picture a pyramid that you build from the bottom up. Life insurance can play an important role in helping protect your loved ones and to make sure they can have the future you’re working toward – no matter what.
The foundation of any financial strategy should be protection against loss, starting with your car and home. As you build your assets, it’s important to update your policies and further help protect yourself from unexpected events. This is where auto and homeowners term life insurance comes in to play.
Help protect those you love
Consider what your family’s financial future would be without you or your income. Even if you already have life insurance coverage through work, is it enough to help provide for their entire financial future? Individual life insurance and disability or extended care insurance should be considerations.
Also keep in mind the financial impact of an unexpected death of a spouse who does not earn income, but provides care to either children or a sick or older family member.
Reviewing your life insurance coverage each year is a good idea as well. Allstate’s survey found that 37 of respondents claim they “never” review their current life insurance coverage against their current situation. As your life changes, your insurance coverage should change with you.
Prepare for tomorrow
Once you’ve helped protect your family and what you have, an important next step is to determine your goals for the future and how your investments can meet those needs. For example, do you have kids who are college bound? Have you started saving enough for retirement? Do you have an emergency fund? The earlier you start saving, the more your investments can grow and compound interest over time.
Pass it on
After a lifetime of working hard to build your wealth, life insurance as a wealth transfer tool is something to consider if you want to make sure as much possible goes to your loved ones.
When thinking of your family’s financial security, term life insurance shouldn’t be confusing. Buying the right amount of life insurance coverage should be one of the first steps to putting you, and your family, on the right path to a bright financial future.
Allstate Personal Financial Representative Jeffrey Long can be reached at or by visiting his office at 94 East Avenue in Norwalk, CT. For more information, you can also visit www.allstate.com.
The Allstate Corporation (NYSE: ALL) is the nation’s largest publicly held personal lines insurer. Widely known through the “You’re In Good Hands With Allstate®” slogan, Allstate helps individuals in approximately 17 million households protect what they have today and better prepare for tomorrow through approximately 14,900 exclusive agencies and financial representatives in the U.S. and Canada. Customers can access Allstate products and services such as auto insurance and homeowners insurance through Allstate agencies, or in select states at allstate.com and 1-800 Allstate®. Encompass® and Deerbrook® Insurance brand property and casualty products are sold exclusively through independent agents. The Allstate Financial Group provides life insurance, supplemental accident and health insurance, annuity, banking and retirement products designed for individual, institutional and worksite customers that are distributed through Allstate agencies, independent agencies, financial institutions and broker-dealers.Securities offered by Personal Financial Representatives through Allstate Financial Services, LLC (LSA Securities in LA and PA.) Registered Broker-Dealer. Member FINRA, SIPC. Main Office: 2920 South 84th Street, Lincoln, NE 68506. 
877...
.
Life insurance and fixed annuities issued by Allstate Life Insurance Company, Northbrook, IL and Lincoln Benefit Life Company, Lincoln, NE. In New York, Allstate Life Insurance Company of New York.
The information provided here is for educational purposes only and is not intended as legal, investment or tax advice. We recommend that you consult with an attorney or tax advisor regarding the tax implications of purchasing life insurance.
No comments:
Post a Comment