Life Insurance Awareness Month
September is Life Insurance Awareness Month
. It's both important and beneficial to get this coverage at an early age, as it can protect your family financially in the event of an untimely passing.
TCU Insurance Agency
is your source for life insurance information and coverage. Check out our life insurance resources here or contact us today
to learn more.
Common Life Insurance Questions
Who Needs Life Insurance?
If someone will suffer financially when you die, you need life insurance. If you were to die today, life insurance would provide cash to your dependents that can help pay for your funeral and other final expenses, meet everyday living expenses, pay down the mortgage, finance longer-term goals like education and retirement, and generally maintain your family's quality of life.
Where Do I Begin?
Start by evaluating your family's needs. Gather all your personal financial information and estimate what your family members would need to meet current and future financial obligations and maintain their quality of life if you were gone. Include immediate expenses at the time of death (e.g., burial costs, outstanding debts, medical bills, estate taxes), ongoing expenses (e.g., food, clothing, housing, utilities, transportation, health care, insurance) and future expenses (e.g., college and retirement funding).
How Much Life Insurance Do I Need?
Since the amount of insurance you need depends on your specific financial goals and circumstances, there's no simple formula to help determine the amount that's right for you. That said, when you consider all the things that life insurance proceeds need to fund and how long the money will be needed, you begin to realize that your true need for coverage is often 10 to 15 times your gross income, sometimes more. While there's no substitute for evaluating your needs with the aid of a qualified insurance professional, you can get a general sense of your needs by visiting the LIFE Foundation's Insurance Needs Calculator
Should I Buy Term Or Permanent Insurance?
It's impossible to say because the kind that's right for you depends on your unique circumstances and financial goals. But generally speaking, term offers the greatest coverage for the lowest initial premium and is a great solution for people with temporary needs or a limited budget. Permanent insurance may make more sense if you anticipate a need for lifelong protection and like the option of accumulating tax-deferred cash values. Also, it doesn't have to be either one or the other. Often¬times, a combination of term and permanent insurance is the right answer.
What Should I Consider In Naming Beneficiaries?
There are several key considerations:
- Always name a "contingent," or secondary,beneficiary, just in case you outlive your first beneficiary.
- Select a specific beneficiary, rather than having the proceeds of your life insurance paid to your estate. One of the great advantages of life insurance is that it can be paid to your family immediately. If it is payable to your estate, however, it will have to go through probate with the rest of your assets.
- Be very specific in wording beneficiary designations. Saying "wife of the insured" could result in an ex-spouse getting the proceeds. Naming specific children may exclude those born later. Changing the beneficiary designation is easy, but you have to remember to do it.
Get started today. Request A Life Insurance Quote.