Category: Life Insurance

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Behind the wheel with distractions riding shotgun

After being in the insurance industry for a few years now, when I think of life insurance my mind envisions many different scenarios.  One scenario is a mature adult in their Golden Years relaxing and reading a book because they know their financial future is securely planned out.  I picture the widow of 3 young children forced to move out of what he or she thought would be their “forever” home, and sometimes I think of the more adult version of myself being responsible in planning my own financial future.  I’m not sure about you, but I have a hard time envisioning the adult version of myself, since I still feel like it’s the 1990’s and I’m somewhere in my 20’s. However, that is clearly not the case since my first born is approaching 15, which means driving, increasing auto insurance premiums, and many moments of worrying.  We explain the increased auto insurance premiums to parents on a weekly basis.  “Yes, Mr. Customer, young drivers are inexperienced drivers, so they are more likely to be involved in a car accident.”  Teenage drivers, who lack driving experience, have distractions to interfere with driving safely, like friends, food, or more dangerous distractions like alcohol and cell phones.  Aahhh!  Why can’t they just stay little!

Typically, it seems that most of us associate life insurance with adults, because we want to ensure our young family is financially cared for or we want to leave a legacy for our adult children and grandchildren.  We rarely think of life insurance for our young children. But as I was saying, they are inexperienced drivers behind the wheel with possible distractions riding shotgun.  They are driving to school, practice, church, parties and traveling home from college on the weekends.  Do we really realize how much time they actually spend on the road? With other drivers? Distracted drivers?  I don’t even want to mention the scary statistics of distracted driving or alcohol related crashes.

The point is, life is unpredictable on a daily basis, but one certainty is that sadly we will all leave this world someday.  So, every family and everybody, whether young or old, can benefit from life insurance.

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To new beginnings…

Next Thursday, we will be having our Grand Opening and Ribbon Cutting Event! We have been in Austin for nine years now, so this event may be a little over due. However, we recently moved to a new location-new construction and new to us, so the time felt right. So, here’s to new beginnings…

New beginnings bring so much excitement, since there is usually some build up to the actual event, whether it be a wedding, new home, new baby, or new office. There are so many stages involved in the “build up” to the actual event: the planning, the budgeting, the purchases, etc. After all of the time, money and effort expended you want everything to be perfect, making sure every “t” is crossed and every “i” dotted! When planning a wedding you want every flower perfectly placed, and every belly full. Newborns must have the softest blankets, and top of the line bottle to avoid long nights of colic. New homes needs shutters, rugs, and matching furniture. However, when on our journey to new beginnings, road blocks happen, we have to change our path and sometimes get out of our comfort zones. Ugh! The stress! Why can’t life happen as we plan it?

It’s in these moments when we should take the time to evaluate what really matters; what is really special about this new beginning? It’s the excitement of committing your life to your soul mate in front of your family and friends, it’s the happiness of raising the beautiful bundle of joy in your arms, and it’s having all of this under one roof to create a lifetime of priceless memories. So, here’s to new beginnings…

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Is your life insurance policy a fundraising website?

Did it seem like 2016 was a year everyone was ready to put behind them?  As we all looked forward to a fresh start in 2017, we were eager to begin new workout routines, try out our new gym membership, start new hobbies, or maybe just start with a new outlook on life.  In the last three months, we have had four deaths in our little circle of friends.  Not how we planned starting 2017, but how many of us actually plan for this?  Some do actually, by preparing a will, a trust, and getting our finances in order, including purchasing life insurance.  And it’s not just purchasing some life insurance, but enough life insurance.  Unfortunately, life insurance doesn’t seem to be on the top of the priority list for some, and in those cases, a series of unfortunate events begin to play out.

When no life insurance is present, lately it seems more and more families are forced to rely on a “Go Fund Me,” page to help with the cost of a funeral.  But what about after the funeral?  The expenses the family endures continue and that mother or father who passed away is no longer contributing to the household income.  So, now the questions are: can the family still afford to stay in their home?  Do they have to move and the children have to attend a new school? Can they afford to pay for the children’s extracurricular activities?  Can they afford to pay for the children’s college?  Does the once stay at home mom, now need to find a job and pay for daycare?  And it goes on and on….

Losing a loved one is a long difficult process to experience and work through; it’s even more difficult when financially burdened. When someone close to you or in your circle passes away, it’s usually a time to reflect on your own life.  Am I a good person?  How will my family get along without me?  But the more important questions are:  Do I want my child to fulfill his dream of going to medical school?  Do I want my spouse to enjoy his or her retirement instead of working to the age of 80?  Do I want to be a burden on my family after I’m gone?  No one wants to be a burden, but everyone wants to show their family how much they love and care for them.

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How to Calculate Your Life Insurance Coverage

Family

One of the most important considerations when it comes to life insurance is deciding how much coverage you need. This can be a tricky calculation for many people. You want to make sure you’re adequately covered, but greater death benefits mean a higher monthly premium. Figuring out a balance between the two is easy if you know what to factor in.

Already have life insurance?

Remember: a life insurance policy through work may only be temporary coverage. It’s a group policy that you probably can’t bring with you if you decide to take a position with another company. Contact Biscoe Insurance Group for information about coverage that will last no matter where you work.

Now, let’s start calculating your life insurance coverage!

What is Included in the Life Insurance Calculation

Below are the items that should be considered when calculating how much life insurance coverage you need.

  • Assets
  • Expenses at Death
  • Family Monthly Income
  • Family Monthly Expenses
  • Inflation Rate
  • Savings Interest Rate
  • Tax Rates

It’s all about projecting future financial needs. A clear snapshot of your current finances is needed along with factors that will affect things over the long-term. How long you want to ensure that expenses are covered will also come into play.

The Allstate Life Insurance Calculator

To make things as easy as possible Allstate has developed a calculator specifically for figuring out life insurance coverage and costs. Within a few minutes you’ll be able to enter your financial information into the life insurance calculator to learn:

  • How much is needed to cover all current expenses over the long-term
  • How much assets will be if converted into cash
  • How much your family will be able to cover in expenses
  • Short fall – the amount of insurance coverage you’ll need

Results can be viewed as line items or as a graph that lays out how big a portion of the expenses will need to be covered by insurance. You can also compare expenses with or without inflation factored in.

Re-figuring Your Life Insurance Needs

If you experience any significant life changes that affect your family’s assets, monthly income or expenses you’ll need to break out the calculator again. Making sure your family is adequately covered requires that you analyze your financials at least once a year. If changes need to be made, contact your insurance agent to update your policy.

Get personalized assistance in calculating your life insurance needs based on a number of variables by giving Biscoe Insurance Group a call.

Image Source: flickr.com/photos/jamesjordan/3774232407

Original Source: http://www.mybiginsurance.com/life-insurance-blog/calculate-life-insurance-coverage/

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9 Life Insurance Myths That Need to be Debunked

Couple_BIGLife insurance is a bit of a mystery to many people because of all the myths that are out there. Today, we’re debunking the biggest myths that can cause life insurance mishaps.

Life Insurance Myth #1 – Don’t Have Kids, Don’t Need Life Insurance

Just because you don’t have kids that doesn’t mean there won’t be a financial loss in addition to an emotional loss for the loved ones you leave behind. If you have debt life insurance will also help pay off the outstanding bills so your next of kin don’t have to deal with them.

Life Insurance Myth #2 – I Have Investments and Savings So I Don’t Need Life Insurance

The costs involved with a death are often underestimated and could easily drain a savings account, potentially putting assets at risk. Life insurance is the best way to financially protect surviving family members.

Life Insurance Myth #3 – I’m Covered By My Life Insurance Policy from Work

Unfortunately, many people make the mistake of believing that the group life insurance policy they have from an employer can be carried over to a new job. In reality this policy will most likely cease as soon as you leave the company. A personal life insurance policy will stick with you no matter where you work.

Life Insurance Myth #4 – It’s Too Expensive

In actuality life insurance is one of the most inexpensive investments you can make. There are a lot of options to choose from to fit many different budgets, including policies that can start at a lower monthly premium and term life insurance, which is for a fixed period of time and is available for less than a dollar a day.

Life Insurance Myth #5 – A Term Life Insurance Policy Can’t Be Converted to Whole Life

If you do select a term life insurance policy to begin with that doesn’t mean it’s set in stone until the policy runs its course. It is possible to convert a term policy into whole life insurance that’s permanent. Discuss the option with your insurance agent if you plan to get term life insurance at first as there may be stipulations and requirements involved.

Life Insurance Myth #6 – Life Insurance Benefits Come with Income Tax 

This is one of the biggest misconceptions about life insurance. Beneficiaries actually do not have to pay income taxes on any money that they receive from a policy.

Life Insurance Myth #7 – My Kids Are Grown So I Don’t Need Life Insurance

As we pointed out in Myth #1 just because you are no longer financially responsible for your children doesn’t mean they won’t benefit from the policy coverage. This is particularly true if funeral expenses and medical expenses need to be paid after you pass away.

Life Insurance Myth #8 – I’m Not Covered If I’m Out of the Country

International travelers often worry that they won’t be covered by their life insurance when they’re out of the country. While some countries that are on the U.S. travel warning list may not be covered many other nations are. Check your policy to determine where your life insurance coverage applies.

Life Insurance Myth #9 – I Don’t Have an Income So I Don’t Need Life Insurance

Even if you aren’t the breadwinner of the family you still bring a lot of value to your loved ones. Everything that you do would have to be done by someone else, potentially costing tens of thousands of dollars. Not to mention funeral costs and loss of income if a spouse has to take of time from work to cope with the situation.

Still have questions about life insurance? Give Biscoe Insurance Group a call and we’ll clear up all the life insurance myths you may have heard.

Image Source: flickr.com/photos/photosavvy

Original Source: http://www.mybiginsurance.com/life-insurance-blog/9-life-insurance-myths-need-debunked

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Protect Your Growing Family with Adequate Life Insurance

New parents are going through a lot of life changes. From your sleep patterns to your disposable income to your social life, nothing will be the same once you bring your baby home from the hospital. It may not seem as important as learning to change a diaper while you’re half asleep, but having a rock-solid life insurance policy is one of the best ways to ensure your growing family is protected.

happy_familyHere’s what you need to consider about life insurance now that you’ve got someone else depending on you.

Starting a New Life Insurance Policy

As soon as you add a new member to your family the need for financial protection grows substantially. Many people don’t even consider getting a life insurance policy until they become a parent. Even then, they may just be thinking about covering the expenses related to funeral costs and paying off debts.

To provide your family with adequate coverage you’ve got to consider all of the financial burdens that would arise if the breadwinner were to no longer provide for the family. Providing for children all the way through college can be much more expensive than you might first expect. It’s often suggested that parents in their 30s should have approximately 15 to 20 times their income in coverage.

Other factors to consider are the type of policy you’ll take out and whether it provides added financial benefits like cash value that can be borrowed against.

Adjusting Your Current Life Insurance Policy

If you already have a life insurance policy, that’s great. But for each child you bring into the world adjustments should be made to your plan. Leaving a spouse with one child to take care of is very different than leaving them with three.

Likewise, if your income changes or the breadwinner of the family shifts then your life insurance policy should be updated. When your children move past college and become financially independent, you may find that you don’t need such a sizable death benefit. Life insurance is something that will grow along with you. It’s not a one-and-done type of decision.

Adding Life Insurance for Your Kids

Thinking about the loss of one of your children is difficult, but adding the pressure of funeral costs and possible lost income from time off at work will do nothing but compound the situation. You may want to consider getting a policy that provides life insurance for children. They are designed to free parents of financial burdens when they suffer the loss of a child. You can opt to cover each child individually or add a child rider to your own policy.

At the end of the day, thinking of your life insurance policy as another member of your family can help you to remember how closely it’s tied to your life changes. If you plan to add to your family or are a new parent in need of coverage, give us a call. Our agents can help you determine how much coverage you need for your family.

Image Source: commons.wikimedia.org/wiki/File:Happy_Family_Photo.jpg

Original Source: http://www.mybiginsurance.com/life-insurance-blog/protect-growing-family-adequate-life-insurance

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Why Couples Should Add Life Insurance to Their Wedding Registry

Planning a wedding is no small task. There are so many details, from the catering to the venue to the guest list. But in all the scheduling you may forget to add one big thing to your to-do list – life insurance.

Whether or not you and/or your soon-to-be spouse already have life insurance policies, a huge life change like marriage means at the very least you’ve got some updating to do. Here are the top five things to think about when it comes to your life insurance needs as newlyweds.

Newlywed Life Insurance Tip #1 – Start Planning for Your Family

It may be years down the road before you add to your family, but marriage brings babies to mind. Life insurance is all about providing protection for your family. Right now it’s just the two of you, but when you’re considering things like the death benefit amount it’s important to project for future financial needs.

Newlywed Life Insurance Tip #2 – Account for Expected & Unexpected Expenses

Buying your first home, covering expenses after losing a job, baby number three – life is full of both expected and unexpected expenses. When you have a family there are even more variables to account for. Some life insurance policies allow you to borrow against the cash value or withdraw it to cover life’s expected and unexpected expenses.

Newlywed Life Insurance Tip #3 – Think About the Life and Longevity of the Policy

It’s the age-old question of term versus permanent life insurance. While it’s tempting to opt for the cheaper term life insurance when you’re young and starting out, in the long run it may not be the most financially rewarding option. The policy could run out right when your kids get to college, and you’ll have to worry about renewing at an older (i.e. more costly) age.

Newlywed Life Insurance Tip #4 – Bring Together Your Budgets

Up until the time that the marriage license is signed there’s a good chance that your budgets are handled separately. But before you make life insurance moves lay everything out on the table – income, assets, debts. You need a clear picture of your current finances together to make the best decisions for your financial future.

Newlywed Life Insurance Tip #5 – Decide on Individual vs. Joint

If you both already have life insurance you may just want to update the policies or you may want to consider having one joint life insurance plan. There are a few benefits to a joint plan beyond only having to worry about maintaining one policy. A joint policy could lower the overall cost of having both spouses covered, and it could provide protection against estate taxes. There are two types of joint life insurance to choose from: first-to-die (the surviving spouse is the beneficiary) and second-to-die (heirs are the beneficiaries after both spouses pass).

If you’re getting married, you’ve probably got a lot of things on your mind. Call Biscoe Insurance Group and one of our knowledgeable agents can help you plan for your newlywed life insurance needs.

Original Source: http://www.mybiginsurance.com/life-insurance-blog/couples-add-life-insurance-wedding-registry

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How Men’s Increasing Longevity Affects Life Insurance

As we age a lot of things change. Parts of our bodies start to sag, our portfolios start to grow (hopefully) and our insurance needs are altered. Life insurance is something that has to transform as we age to stay up-to-date.

coupleonbenchFor men, aging must now be considered more than it has in the past. A recent study from the Institute of Health Metrics and Evaluation found that men are living longer and starting to close the age gap between themselves and women. They are also increasing their longevity at a faster pace than women. Between the years of 1989 and 2009, the IHME found that men added 4.6 years to their life expectancy while women only added 2.7 years in the same time period.

The reasons behind the increasing life expectancy in men are that they are living healthier lifestyles than in years past and are less likely to be obese than women. With these added years come new considerations and the need to plan for them. One such consideration is life insurance. Below are the factors likely to come into play with life insurance as a man ages.

The Possibility of Passing After Your Spouse

Many men name their spouse as the beneficiary of their life insurance policy, especially if they have children that are still minors. But now that men are beginning to narrow the life expectancy gap, they need to start planning for the possibility that their spouse may be the first to pass away. It’s always important to have a contingency plan for beneficiaries no matter what age you are, but as you get older this becomes increasingly more important.

Keeping Healthy to Keep the Cost of Insurance Low

If you haven’t gotten a life insurance policy yet or you have term life insurance that you intend to renew, your age will factor into the cost. The best thing you can do to offset the age increase is improve your health. It’s especially important to focus on heart health, exercise, eating right and kicking bad habits like smoking.

Naming Grandchildren as Benefactors

The older you get the more descendants you’re likely to have and the older they will be when you pass away. Many people who live to the average life expectancy and beyond have adult grandchildren that are a big part of their lives. It’s becoming more common for people to name their grandchildren as the beneficiaries of their life insurance policy.

Just keep in mind that naming your grandchildren as beneficiaries could come with additional taxes, like the Generation Skipping Tax. If the grandchildren are still minors when the life insurance policy is initiated, you’ll want to set up a trust in their name as well.

Budgeting for Life Insurance

Many people are having to reevaluate their budgets to reflect a longer lifespan. Life insurance is a budget item that has to be factored in. Depending on how your policy is written you may need to make monthly premiums for the entirety of your life so it doesn’t lapse. Consider the long-term costs and plan accordingly. You may be able to increase your premiums now while you’re still working so you can stop making payments at a later date or deposit a large lump sum to cover you well into retirement.

There are also tax incentives for certain types of life insurance policies, so speak with an insurance agent or financial adviser to understand all the ins and outs of how different options help you save during tax season. Our life insurance experts at Biscoe Insurance Group are happy to answer any questions about planning for life insurance as you age.

 

Image Source: www.flickr.com/photos/justcallmemo/8727658387

Original Source: http://www.mybiginsurance.com/life-insurance-blog/mens-increasing-longevity-affects-life-insurance

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Making Life Insurance Part of Your Heart Health Routine

It’s American Heart Month! No, we’re not talking about the construction paper or chocolate hearts that you get on Valentine’s Day – we’re talking about your ticker. The American Heart Month is all about bringing attention to preventing heart disease through healthy choices. Since heart disease is the leading cause of death in the United States life insurance companies understandably put a lot of focus on heart-related issues.

heartmonthLet’s take a look at how your heart can affect your life insurance policy and why it’s so important to make sure everything is up-to-date.

Heart-Related Issues That Can Come Up on Life Insurance Applications

Life insurance offers protection for your entire family, which means your heart health can have an effect on all your loved ones. When you apply for life insurance a lot of attention is going to be put on the following heart-related issues.

Medical History

If you’ve had any heart problems in the past, like a heart attack or even a heart murmur, this will need to be noted. The life insurance company uses your medical history to assess how healthy you are now.

Medications

You’ll need to disclose all the different types of medication you are taking, including anything for high cholesterol, coronary artery disease, blood pressure, etc. You may be asked to take a physical, which will screen for medications so be upfront about all the medications you’re taking.

Smoking

Smoking cigarettes and cigars can lead to many different health issues including heart disease. Your life insurance company is going to want to know if you smoke and how much. It’s important to be honest, because any information that is withheld could nullify your policy. Did you kick the butts to the curb? Great! Update your company about how you kicked the habit and you may be able to reevaluate the terms of your policy.

Drug Use

You’ll need to let your life insurance provider know of any drug use. This of course is seen as very adverse to your health, especially your heart. It’s one of those topics that can take most people by surprise, it is definitely a factor in the policy making and payouts.

Exercise

The American Heart Month puts a lot of emphasis on exercise. Probably because a new study covered by The American Heart Association found that being sedentary significantly increases the risk of heart failure in men. The AHA recommends that people get at least 150 minutes of moderate physical activity in each week to keep their heart healthy.

Annual Physicals

Going to the doctor on a regular basis is a great preventative measure and will help you catch issues before they become a problem. As far as your heart goes an annual physical will test your blood pressure and blood work could catch other possible concerns. Life insurance companies typically like to see people in their 60’s go in for a physical at least once every year or two.

Your Heart Health and the Cost of Your Life Insurance

All the issues above will be taken into account when determining the premiums and payouts for your life insurance policy. The good news is some things like taking medications to control heart-related issues could help to lower costs if you do have health problems. Of course, the healthier you try to keep your heart the better your rates will be.

However, it’s worth noting that if you have serious concerns such as a previous heart attack it may be difficult to find a provider that will underwrite a policy. Feel free to give Biscoe Insurance Company a call if you have any questions on how heart-related issues could affect a life insurance policy.

Image Source: http://www.flickr.com/photos/laradanielle/3628048912/sizes/l/

Original Source: http://www.mybiginsurance.com/life-insurance-blog/making-life-insurance-part-heart-health-routine

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Control Life’s Chaos a Little Better with Life Insurance

In a few days Chaos Never Dies Day will be upon us. It’s a day that recognizes chaos is a part of life, but the “holiday” also serves as an opportunity to take back control. Celebrating it means taking action to quell the chaos.

If you do just one thing on Chaos Never Dies Day it should be updating your life insurance policy.

How Life Insurance Helps to Control the Chaos

You can’t control the unexpected. However, you can influence the outcomes after it happens by preparing for it. Life insurance is a chaos safety net for your loved ones. Here’s a few ways that life insurance can limit life’s chaos.

november-09-chaos-never-dies-day

Peace of mind that your family is taken care of when you’re gone. This is the biggest benefit to you the policyholder. If you are the breadwinner of the family it’s all the more important to provide your family with means to support themselves.

It covers the cost of funeral expenses. This is much more of a financial burden than many people realize. According to the National Funeral Directors Associate, the average cost of a funeral in 2012 was $7,045.

Life insurance for your kids gives you further financial securing. In addition to covering funeral costs it can also offset loss of income from taking time off from work.

Kids are covered even if a health problem pops up. Another benefit to getting a life insurance policy for your child is that they can keep it for life in many instances. This is a huge relief if your child develops a health problem that would disqualify them from getting coverage when they’re older.

The life insurance policy can be an asset that you can borrow against. After time your policy will build up a cash value. This cash value is seen as an asset and as such you can borrow against it if you need a loan. You can also withdraw a portion of the cash value if you need it for other expenses.

Tax benefits. There are significant tax benefits for the policyholder and their beneficiaries. For one the death benefit to the beneficiary is tax-free. However, other assets that are inherited are subject to estate taxes. The death benefit can help pay for estate taxes ensuring that beneficiaries can inherit without financial problems. Life insurance also qualifies as a tax-deferred asset accumulation.

Life insurance is a protected asset. In many circumstances life insurance benefits and assets are protected from creditors.

Even if you already have a life insurance policy it’s important to make sure it’s up-to-date so that it provides the best financial protection. Keep beneficiary information current, check in on how the cash value is building and brace yourself for all the other chaos you can’t control.

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Original Source: http://www.mybiginsurance.com/life-insurance-blog/control-lifes-chaos-little-better-life-insurance