Tag: life insurance

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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.

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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.

 

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