What You Need to Know about Life Insurance

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By Delta Jones-Walker, Gary Crusader

As we transition from summer to autumn, it’s a perfect time to perform a “financial check-up.” Let’s talk about life insurance.

Per the experts, one way to help ensure a worry-free, financially sound lifestyle is to have a solid life insurance policy in place. Life insurance pays the beneficiaries named by the policyholder in the event of the policyholder’s untimely death. This eliminates the worry of what will happen to loved ones should your demise come unexpectedly, especially if you are the principal wage earner in the family.

Here are a few other things to consider when securing life insurance:

What type of life insurance do I need, term insurance or permanent insurance?

Term insurance is when the policyholder pays one flat rate year after year for the length of the policy. This policy will replace your income should you die prematurely.

Permanent insurance provides lifelong protection and the ability to accumulate cash value on a tax-deferred basis. Unlike term insurance, a permanent insurance policy will remain active for as long as you continue to pay your premiums.

How much coverage should I buy?

The suggested rate of coverage is 6 to 10 times your annual salary or income.

Should I get life insurance coverage through my place of employment?

Purchasing life insurance from your employer is a very popular option, but it is often better to qualify on your own and go through medical underwriting so that you are eligible to purchase a policy independent of your employer. In most cases, we don’t stay with the same employer forever, so you will have to keep signing up for life insurance coverage with each new employer, if they offer it.

Do I really need life insurance?

Does anyone depend on you financially? Do you have children who are minors or a spouse or significant other who relies on your income to survive? If the answer is yes, then you need life insurance.

One other circumstance to remember is the case of stay-at-home spouses. Should your spouse who does not work pass away, the remaining parent would then incur the cost of childcare and other expenses/duties previously covered by the stay-at-home spouse.

If you are unsure about the steps regarding life insurance, take the time to speak with a financial advisor for guidance. Don’t delay this conversation, for your sake, and the sake of those who depend on you!

Connect with Delta Jones-Walker and Atled Financial on Facebook, Twitter: @Atled_Financial and LinkedIn! To schedule a complimentary consultation or a presentation to your group or organization, call 219-513-3710 or email djwalker@atledfinancial.com and mention this column. Topic ideas for this column are welcome!

*Securities and advisory services offered through Woodbury Financial Services, Inc., member FINRA/ SIPC. Insurance services offered through Atled Financial Group 717 B Main Street Schererville, IN 46375, which is not affiliated with Woodbury Financial.

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