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Category: Life insurance

Review your life insurance

Do you have enough life insurance?

As time goes on, sometimes our debt load and obligations change. We buy a bigger house, we might have some loans, we might have kids.

Do an analysis to see if you have the proper amount of life insurance.
You may have life insurance through your employer. That’s great, but it isn’t portable…. Meaning if you separate from service with your employer, you won’t have life insurance. Most employers have group plans that are good while you are an employee. So don’t count on that insurance as a major part of your life insurance planning. The exception to this is if you are uninsurable on your own. Then you have no choice but to count on what you get at work.

How much is enough?
Add up the total of your debts. This includes mortgage, car loans, credit cards, personal loans. Do you have children? Do you want to provide for them? Maybe have enough for college costs if you were to pass away before they finish school? How about your spouse? Will they be able to get by on what you have saved? Add up your outstanding debt, the amount you would like to leave your children and spouse and that gives you a pretty good idea of how much insurance you will need. After you know much you need as a total, you can divide it up into time frames. Will your mortage be paid off in 10 years?
I suggest that you speak to a financial advisor regarding insurance needs. Many have tools to help calculate how much insurance you need and for how long of a period of time. You don’t want to underinsure and leaved your loved ones short of funds. You don’t want to over insure and waste money that could be invested in other things.

Sharon L. Herman AAMS, ADPA is the CEO of Silver Key Wealth Management, and affiliated with LPL Financial. www.silverkeywealth.com
The opinions expressed in this material do not necessarily reflect the views of LPL Financial.
Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Silver Key Wealth Management, an independent investment advisor. Silver Key Wealth Management is separate entity from LPL financial.
Ms. Herman may only discuss and/or conduct transact securities business with residents of FL, MI, GA, NJ, VA, TX. www.finra.org. www.sipc.org

photo credit: Ruben Holthuijsen

 

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3 Key Points for Life Insurance

StopLight

Life insurance is not a fun topic.  It means that someone has kicked the bucket or you are planning on someone kicking the bucket. Usually people don’t like to dwell on if they have enough insurance.  But let’s be good to our partners, my savvy LGBT friends and figure out pretty quick if we have enough insurance. Here are three things to look at:

•    How much is your mortgage and how much longer to pay it off?
o    This is usually the biggest debt a person has

•    How much outstanding debt do you have as a couple?
o    Outstanding credit card debt, car loans, etc.

•    Do you want to provide living expenses for your partner or children?
o    Are they going to miss your income? Do you want to leave them something to get by until they are settled? Do you want your children’s college expenses taken care of?

Add up the numbers and the time frame. This gives you a “quick and dirty” amount of life insurance that you’ll need and for what time frame. Most of these items can be covered with a term life insurance policy. Term life is something that you purchase as an individual.

Insurance can be complicated. You may have a need for more or less, depending on your individual situation. I suggest meeting with an ADPA designated financial advisor to help you better understand your individual needs.

What is the biggest fear you face if you unexpectedly pass away?

 


 

Sharon_Herman_HeadshotSharon L. Herman AAMS, ADPA is the CEO of Silver Key Wealth Management, and affiliated with LPL Financial, the largest independent broker/dealer* in the United States. www.silverkeywealth.com

The opinions expressed in this material do not necessarily reflect the views of LPL Financial.

Securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Independent Financial Partners, a registered investment advisor and separate entity from LPL financial.

Ms. Herman may only discuss and/or conduct transact securities business with residents of FL, MI, GA, VA, NJ, TX. www.finra.org. www.sipc.org

*Financial Planning Magazine (June 1996-2013 based on total revenue)

 

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