 |
|
 |
 |
 Home |
|
|
Final
Expense |
Term |
Mortgage
Protection |
    |
|
|||||||
|
|||||||
|
|||||||
|
|||||||
Zumo's Financial Services is uniquely positioned to offer the personal service that our client's deserve. Combined with powerful financial resources with top A Rated Companies. We are a company who CARES and a Company that will always put our clients FIRST. Call for Free Review - 1-334-472-0040 |
 |
Life Insurance
Life
Insurance / Term
Life
Why should I buy life insurance? Many financial experts consider life insurance to be the cornerstone of sound financial planning. It can be an important tool in the following situations: Replace
income for dependents
If people depend on your income, life insurance can replace that income for them if you die. The most commonly recognized case of this is parents with young children. However, it can also apply to couples in which the survivor would be financially stricken by the income lost through the death of a partner, and to dependent adults, such as parents, siblings or adult children who continue to rely on you financially. Insurance to replace your income can be especially useful if the government- or employer-sponsored benefits of your surviving spouse or domestic partner will be reduced after your death. Pay final
expenses
Life insurance can pay your funeral and burial costs, probate and other estate administration costs, debts and medical expenses not covered by health insurance. Create an
inheritance for your heirs
Even if you have no other assets to pass to your heirs, you can create an inheritance by buying a life insurance policy and naming them as beneficiaries. Pay
federal “death” taxes and state “death” taxes
Life insurance benefits can pay estate taxes so that your heirs will not have to liquidate other assets or take a smaller inheritance. Changes in the federal “death” tax rules between now and January 1, 2011 will likely lessen the impact of this tax on some people, but some states are offsetting those federal decreases with increases in their state-level “death” taxes. Make
significant charitable contributions
By making a charity the beneficiary of your life insurance, you can make a much larger contribution than if you donated the cash equivalent of the policy’s premiums. Create a
source of savings
Some types of life insurance creates a cash value that, if not paid out as a death benefit, can be borrowed or withdrawn on the owner’s request. Since most people
make paying their life insurance policy premiums a high
priority, buying a cash-value type policy can create a
kind of “forced” savings plan.
Furthermore, the
interest credited is tax deferred (and tax exempt if the
money is paid as a death claim).
Life Insurance or
as we call it Life Assurance can make all the difference
in the world.
Term
Term life insurance is the simplest and most inexpensive form of life insurance. And it can provide the peace of mind that comes from protecting your family at a very low cost. Term life
insurance provides the largest immediate death benefit
for the minimum premium dollar. When compared to
traditional whole life policies, term life insurance is
substantially cheaper. Its reasonable rates
allow for the purchase of much larger coverage than can be afforded from permanent life insurance. Term insurance covers you for a specified period of time, usually 5, 10, 20, or 30 year periods. As the name implies, term insurance is temporary, for a set period of time. Unlike universal or whole life insurance it does not accumulate cash value. When planning for
your families financial future it's important to keep in
mind that term life expires and it is possible to
outlive your policy. If you're looking for permanent
insurance that builds cash value whole life insurance
may be the answer for you. Term life insurance on the
other hand is often referred to as pure insurance
protection because it builds no cash value. Its primary
purpose is to provide for the financial responsibilities
of the insured in an affordable manner.
Determining
How Much You Need
There are several methods used to calculate an individual's need for life insurance. They include but are not limited to, rule of thumb, human life approach, and needs based approach. Rule of
Thumb
The most agreed upon rule of thumb is that an individual should be insured for about 10 times his or her annual salary. If the insured makes $50,000 a year, a policy in the amount of $500,000 would be appropriate. This is the simplest of all the methods for obvious reasons. Human
Life Approach
This method determines what your economic contribution to your family would be over your expected lifetime. Needs
Approach
The most comprehensive method. All upcoming expenditures are reviewed to determine the amount of insurance needed. Total assets are subtracted from the total financial obligations to determine the amount of life insurance needed. These obligations commonly include mortgage payments, future educational expenses, future income for family, funeral expenses, and more. Types of
Term Life Insurance
After settling on a suitable policy amount it's important to find the type of policy that is best for you. Term or
Straight Term
The amount of death benefit you purchase remains uniform for as long as the policy is in force. The premiums also stay the same for the life of the term chosen. Level term is by far the most popular types of term insurance. Decreasing
Term
The amount of death protection you purchase decreases over time, but your premiums stay level throughout the term of the policy. Decreasing term is typically purchased by those who expect their insurance needs to diminish over time. Some examples would be to cover a mortgage or a business loan. Both of which would have decreasing obligations over time. Families with younger children often utilize decreasing term insurance; as the children age the need for insurance diminishes up until they leave the nest. Annually
Renewable Term
The amount of death protection you purchase will stay the same, but your premiums increase every year. These policies are typically purchased by younger individuals looking for an inexpensive policy when they're young, but as they age the premiums become more costly. Convertibility
Privileges
Many term life insurance policies offer a convertibility privilege. This is a nice feature that allows you to convert your term policy to permanent life insurance for an equal, or lesser amount of coverage. The big benefit to this is that you can do so without any evidence of insurability. With no required medical exam you could complete the conversion, even if diagnosed with a terminal illness. Insurance companies often hedge against this by establishing a maximum age. Buy Sell
Agreement
Term insurance is often purchased by business associates to cover anything from a deceased partner's share of a company to outstanding debts. This is often referred to as a "buy sell agreement". This binding contract is negotiated between key business partners and covers future ownership issues. It is also utilized for key employee insurance. This is designed to protect the company against the hardship that may result from the possible loss of a valuable contributor. Key employee insurance is very common in small businesses where there are a small number of employees and the loss of a "key" employee could prove detrimental to the business. Return of
Premium Life Insurance (ROP)
Would you like term insurance that refunds your money if you don't die? Well now you can—it's called Return of Premium Life Insurance. One of the biggest objections to buying term life insurance is that people see themselves outliving the specified term and often think of the premiums as wasted money. The insurance industry has answered that objection with the recent introduction of Return of Premium term life insurance. Return of Premium
or ROP combines the benefits of traditional term life
insurance with a return of premium feature. Simply
put your family receives a lump sum death benefit if you
die, otherwise if you win your bet with the insurance
company and you live the insurer returns all your
premiums. This money-back guarantee can be particularly
comforting for those that believe death will not occur
during the term of coverage.
Conclusion
Without a doubt straight term offers the best bang for the buck of all the life insurance types. Combine that with the fact we're living longer healthier lives and you've got a pretty attractive arrangement. The number of deaths in individuals age 25 to 44 has decreased significantly over the past ten years, resulting in individual life insurance premium price drops of 5 percent on average since 2000, according to the Insurance Information Institute. Making term life insurance more affordable than ever. Term life
insurance may be one of the best deals in town.
|
Is this your Retirement?  |
||||||||||||||||||||||||||||||||
 |
|
| Direct Line - 1-334-472-0040 |
