In today's economy why buy life insurance?

Today’s Economy is tough, why should I purchase life insurance?

Quick Tips from Joseph McHugh Insurance Agency in Boca Raton.

You probably know why life insurance is important in a strong financial house: It will provide income for your spouse and dependent children in the event of your untimely death. But for many, life insurance continues to be a worthwhile expense even after the children finish school and fly from the nest. This is especially so because of economic and social trends and medical advances.

For starters, many Americans who tapped their home equity or traded up to bigger homes and loans during the go-go years have added decades of mortgage payments at the same stage of life when World War II generation parents owned their homes free and clear. That, combined with underwater home values for many home­owners, is a debt sentence for your survivors if you don't have an adequate amount of life insurance. Societal changes have also created new needs for coverage. Working couples who delayed having children might still have dependent kids when they're in their 60s. Ditto for blended and new families formed in later-life second marriages.

Last year, 6 percent of married men in households with children under 18 were 55 or older, up from 3.6 percent in 2000, according to the U.S. Census Bureau. And parental financial obligations rarely end at 18, especially for college-bound kids.

Finally, because of greater health awareness and advances in medicine, your surviving spouse may well live a decade or two after you die. Those sunset years will be costly, and a sufficient death benefit will help push back the day when he or she might outlive your joint assets. In these uncertain times, it's especially important to re-examine your life insurance needs to make sure your coverage is up-to-date.

This is some information I have found through many articles and from years of experience that review five questions you need to ask.

How Much Do I Need?
For a lot of working people with children and a stay-at-home spouse, the very least amount of life insurance they should have is $1 million. But we recommend a more thorough analysis tailored to your particular family profile. Your family goal may be to figure out how much money will be needed to adequately support your children through college and your spouse through retirement. So the future cost of college for your kids, your mortgage payoff, and the income needs of a spouse who could live to 90 are the most important items to factor in. You can work the numbers with the help of a good financial specialist. Our in-house financial specialist is Bennett Leace who we highly recommend if you are in need of a review. As a service to our clients you have complete access to Bennett anytime so please take advantage.

What Type of Policy Is Best?
The two major types are permanent and term life insurance. Permanent life (which includes whole, universal, and variable life policies) is a mix of life insurance and an investment account that pays a benefit when you die or the built-up cash value if you liquidate it before your death. Term life is pure insurance protection that provides a death benefit if you die within a set number of years and typically nothing if you live beyond that term. Although it may seem that a live-or-die payout is better than having to die to get a benefit, you pay significantly more to get the twofer of permanent life, while term is lower-priced. The higher cost of permanent life goes to the investment side of the policy. Cash-value insurance can provide estate-planning and tax advantages for people over 60. But for most people, term life is the simplest, least-expensive option.

Do I Qualify for Coverage?
You can buy term life insurance in your 50s and 60s, but premiums will be higher than if you were younger. Also, don't automatically assume you're uninsurable if you're in less-than-perfect health. Quick Tip: Whatever your health, make sure you get in shape and get a physical from your family doctor before you apply for insurance so you won't be unpleasantly surprised. If you're overweight, shed the extra pounds. And do whatever else your doctor recommends to get your stats in line. Better yet, get serious about your health and move up to a better risk class. When we analyzed the savings possible from 12 lifestyle changes, we found that one of the biggest premium reducers is to quit smoking cigarettes. Have high blood pressure or high cholesterol? If you faithfully take your medicines to bring those down to normal levels, you could knock thousands from your premiums over the life of the policy.

Where to Get the Best Price?
You can apply for insurance online, but it’s in your best interest to contact a financial specialist who can assist and guide you and your family. When we asked our clients who have had a client review with Bennett Lease every one of them found his knowledge and experience to be most helpful and strongly recommend his services to others. How Strong Is the Insurer? Always remember, you buy insurance for peace of mind, so you don't want to worry about whether your insurance company will drop dead before you do. Look for one with the very top financial-strength rating. With Joseph McHugh Insurance Agency in Boca Raton you will be incredibly well taken care of. You and your family will have the peace of mind you deserve with all our financial products.