William Penn Life, 2013 (48. évfolyam, 1-12. szám)
2013-04-01 / 4. szám
Moneywise with Jeff DeSantes How to buy life insurance THE PERCENTAGE OF AMERICAN households with individual life insurance policies has dropped to 44%, a 50-year low. We can blame unemployment, confusing product ads or the uncertainty of the economy, but many people who may really need life insurance are going without it. Among the 35 million American households that have no life insurance, 11 million include children under the age of 18. Of those 11 million, 40% say they'd have trouble paying everyday bills if the breadwinner were to die today. That's according to LIMRA, an insurance industry research organization, which based its study on a survey of 3,766 households. Who should consider coverage? For starters, relatively young breadwinners with mortgages, college tuition or other bills that will require a back-up plan if they are no longer around to cover them. If you are fortunate enough to have substantial assets, life insurance can also cover estate taxes for your heirs. Your need for life insurance varies with your age and responsibilities. It is a very important part of financial planning. There are several reasons to purchase life insurance. You may need to replace income that would be lost with the death of a wage earner. You may want to make sure your dependents do not incur significant debt when you die. Life insurance may allow them to keep assets versus selling them to pay outstanding bills or taxes. Here are some tips on buying life insurance: • Make sure you feel confident in your insurance agent and company. • Decide how much you need, for how long, and what you can afford to pay. • Learn what kind of policies will provide what you need and pick one that is best for you. • Do not buy life insurance unless you intend to stick with your plan. It may be very costly if you quit during the early years of a policy. Does it make sense to replace your current policy? Think twice before you do, because in many situations, it may not be to your advantage. Before dropping any inforce policy, consider these three things: 1. If your health status has changed over the years, you may no longer be insurable at standard rates. 2. Your present policy may have a lower premium rate than is required on the new policy. 3. If you replace one cash-value policy with another, the cash value of the new policy may be relatively small for several years and never be as large as that of the original one. You should ask your insurance agent for a detailed cost breakdown of both policies, including premiums, cash surrender values and death benefits. Compare these as well as all features offered by both policies. Make sure that your agent puts all of this information in writing. If you decide to replace your current coverage, make sure that your new policy will be in force before you cancel the old one. If you do not have a WPA agent, please call the Home Office at 1-800-848-7366, ext. 120. We can assist you in finding an agent who can serve you and your family by offering a review of your needs, life insurance protection, taxed-deferred annuities, juvenile insurance plans and special fraternal benefits. □ 8 I 9 a • vlichael SaMcino ' «“$$857 —ft SS. n-***" ■ St».*««'“*1* 4 0 April 2013 0 William Penn Life Michael is FINRA registered with security registration 6, 7, 63, 65 and 24. He offers services with regard to mutual funds, IRAs, Roth IRAs, limited partnerships, unit investment trusts, CDs, brokerage accounts, asset management accounts, college funding and individual bonds and stocks. Michael is also licensed to offer life, disability income, long-term care and health insurance, fixed and variable annuities. He is a member of GAMA - General Agents and Management Association. □ AGENT PROFILE
