In the past, many people depended on employers to provide some type of life insurance as part of the employee benefit packages. With a number of employers choosing to reduce or even do away altogether with these types of benefits, the task of evaluating and choosing a life insurance plan now falls to the individual. Some are choosing to put off this important task while focusing on pay off debt. This can be a very costly decision; especially if there is relatively little money in a savings account or other account that a spouse or partner can draw upon when you pass away.
Life insurance can provide a significant amount of security for loved ones in the event of your untimely demise. The proceeds can be used to pay credit card debts and other obligations, as well as ease the burden of any end of life expenses that may be present. Any amount that is left over can then go toward helping with education or other options that will make life a little easier for your survivors. For this reason alone, having term or whole life insurance is a must.
Finding the right Life Insurance coverage depends on a number of factors such as age, income level and life expectancy. This means some consumers can secure a higher amount of insurance than others. Even if all you can afford right now is a basic plan that will provide enough to settle the expenses you leave behind, talk with an advisor that will take the time to do a proper needs analysis today. Many policies are more affordable than you think; choose a plan that is right for your circumstances. For example and standard Ten year term, 40 year old male, non smoker with $500,000 death benefit is ~$35 per month. A female is even cheaper. Why wait or rely on your employer – don’t you want to own and control this important piece of financial security for your family?
Doug Frain, CFP, Principal | Millcroft Financial Group
