William Penn Life, 2011 (46. évfolyam, 1-12. szám)
2011-09-01 / 9. szám
Moneywise with Jeff DeSantes It’s time for a review Reviewing your life insurance coverage is a must NOW THAT SUMMER is coming to an end, it is a perfect time to call your WPA agent and ask them to do a comprehensive review of your current life insurance coverages. You should review your coverage every few years, not only to check the beneficiaries, but also to make certain that you have adequate coverage and that the coverage is appropriate for your current circumstances. This review involves reviewing your assets and determining the amount of your debt. You should also identify your monthly, quarterly and annual expenses and your income to make an appropriate estimate of the life insurance coverage you would need for your family to continue their current lifestyle if you were to pass away. You want to have sufficient life insurance to cover all immediate necessities and provide a means for your family to pay off some or all of your debt at the time of your death. You need to also consider the costs of funeral and burial expenses when reviewing life insurance coverage. You also need to periodically review who you have named as beneficiary of your insurance policies. Marriage, birth or adoption of children, divorce, becoming a grandparent and retirement are examples of when to review your beneficiary designations. Inappropriate beneficiaries include minor children, minor grandchildren or someone that is impaired and is unable to make financial decisions on their own. If you choose one of these inappropriate beneficiaries, the proceeds of your life insurance may be turned over to the courts for administration. A conservator will be appointed by the court to hold or invest the money appropriately, and in the case of a minor, once he or she reaches 18, the child will receive all of the money. Conservatorships involve court costs and attorney fees, in addition to annual reports that must be filed with the court to approve the expenses and investments of the proceeds of the conservatorship for the duration of the conservatorship. If a conservatorship is opened for an impaired person, it can continue until that person dies. A review should be done frequently to make certain that negative consequences do not happen and to ensure that your beneficiaries are current. A review will also help determine whether or not you need to purchase additional life insurance, whether or not your term life insurance policies are about to expire or need to be renewed, and whether you should look at different types of policies. To avoid these common mistakes, you should contact your trusted WPA agent to guide you in the right direction so that you can consider all of your options and make an educated and informed decision when purchasing and maintaining life insurance. When selecting life insurance coverage, remember to look at all facets of your life to determine the amount and type of coverage you need. □ If you do not have a WPA agent, please call the Home Office at I -800-848-7366, ext. 120, and we can assist you in finding an agent who will serve you and your family by offering: • A Review of Your Needs • Life Insurance Protection • Taxed-Deferred Annuities • • Juvenile Insurance Plans • Special Fraternal Benefits • 6 0 September 2011 ° William Penn Life
