2017 – Page 4 of 5 – Life Happens

5 Reasons Why It’s (Super) Smart for Women to Get Life Insurance—or More of It

by Helen Mosher | April 7, 2017 | Life Insurance | 0 comments

One of the most harrowing experiences I’ve ever had was during the sixth month of my pregnancy. My husband was out late, hadn’t called, and I was, of course, angry at his thoughtlessness. But this very evening, he had misjudged a bend in a rural, mountain road—and plummeted off the side of it into a ravine, totaling his car.

It was some time before campers found him, unconscious and with a dislocated shoulder, but otherwise uninjured. I was overwhelmed suddenly—even though my husband was going to be fine—with the prospect of managing the future costs of raising a child without him. But there was a catch to this epiphany: I was the breadwinner of the family. If I was worried about losing him, what if he lost me? I talked to an insurance agent and secured policies for both myself and him.

My story could be anyone’s story. And women, in particular, tend to have less life insurance coverage than men. So here’s why it’s a good idea to take stock:

1. Women increasingly are the primary breadwinners and even sole providers for families. Whether you’re earning more than your spouse or you don’t have a spouse, your income is critical to providing the most basic of needs to your family, whether that family involves kids you’re raising, aging parents or a special-needs sibling you’re caring for. Life insurance ensures that whomever depends on your livelihood can continue to do so even after (heaven forbid) something happens to you.

2. Stay-at-home moms need protection, too. Don’t discount the value you provide as the manager of the household. Life insurance provides much needed funds when an overwhelmed spouse or other caregiver suddenly has to find help to care for the kids, manage a household or needs to take a significant amount of time off to stay with them. Watch the Virgen’s story if you have any doubt.

3. Women often pay less for insurance—or get more coverage for the same amount. Because women have a longer average life expectancy than men, that in turn brings the cost of life insurance down for women. Also keep in mind that the younger and healthier you are, the less it will cost you. For example, a healthy 30-year-old can get $250,000 of coverage in the form a 20-year level term life insurance policy for about $13 a month.

4. Mompreneurs and those who work part time need coverage too. Women often run home-based businesses or work part time while also raising children. They should also consider their need life insurance because, while they may not be the main breadwinner, their income supports the family and will be sorely missed if something were to happen.

5. Women’s situations can change. Just when you think you’ve gotten your life insurance needs all taken care of, you might experience more additions to your family, or close down a business, or go through a divorce, or a family member might need your active support in the future. Is your insurance up-to-date with your changing needs?

Remember, an insurance agent will sit down with you free of charge to go through your needs and help you find coverage that fits your budget, which is key! If you don’t have an agent, here are some tips on finding the right fit and then searching by ZIP code with the Agent Locator. Don’t wait for that crisis moment, the way we nearly did!

A Family Torn Apart

by Hanna Boykin | March 21, 2017 | Life Insurance | 0 comments

Imagine one morning waking up to find that your mother unexpectedly passed away during the middle of the night. Now imagine reliving that horrible experience again 14 months later when your father dies from a terminal illness. I wouldn’t wish that on anyone, but that has been my (and my five siblings) reality for the past two years.

The grief and pain of the loss of our parents is severe, but it doesn’t stop there. Not only have I been emotionally devastated by the loss of my parents, my siblings and I were torn apart because no one in our family had the financial resources to take on the responsibility of 6 teenagers, and so we now all live under different roofs.

Most families have the luxury of their older teenagers moving out after they begin attending college or find a job where they can support themselves, but that didn’t happen to us.

I often think about what would have happened if my parents had planned for their—and our—future by purchasing life insurance.

I often think about what would have happened if my parents had planned for their—and our—future by purchasing life insurance. Would I still be living with my siblings? Would we be in a financially stable situation so that we could stay together and support each other in our life and college aspirations? I know my life would have been better with life insurance, but I can’t change the past, I can only change my future.

Like my mother, I plan on going to college to be a nurse. I have to do this on my own. I have to work to put myself through school, and it is going to be tough, but I am determined to be a nurse and have a better future. Nursing classes are not easy. Anatomy, physiology, chemistry, and biology are just a few of the challenging classes I will be taking. Being 17, attending college full time and working is going to be hard. Every day I worry how I will manage to pay for basic necessities like rent, food, and utilities.

I don’t want to come across as feeling sorry for myself. I’ve cried enough tears for a lifetime. I’m a survivor, and I know that there are many other people in the world who are worse off than I am. I want to be a nurse to help people; to heal people. I also want to be a nurse because it will provide me and my future family with financial stability. Now that I know better, I can give my future children stability by purchasing life insurance to give them a better chance at life should something happen to me.

I hope that when I finish college, I can move my little brother in with me and put him through college. Both of us know that we need education to become successful adults. When he is older, I am going to tell him to get life insurance too. Thank you for this opportunity to share my story. I hope that other people can learn from my experience.

Editor’s note: Hanna received a Life Lessons Scholarship. You can help students like Hanna make their dream of a college education come true by donating to the nonprofit Life Lessons Scholarship fund. Donate here.

Life Insurance for a Family of One

by Marvin H. Feldman | March 10, 2017 | Life Insurance | 0 comments

We spend a lot of time talking about how couples, families and businesses can protect their financial futures with life insurance. But what about if you are single—do you need life insurance, too?

There are those people who have no children, no one depending on their income, no ongoing financial obligations and sufficient cash to cover their final expenses. But how many of those people do you really know? And, more importantly, are you one of them?

I think it’s important, then, to illustrate how a life insurance purchase can be a smart financial move for someone who is single with no children. Asking yourself these three questions can help you get at the heart of the matter:

Do you provide financial support for aging parents or siblings?
Do you have substantial debt you wouldn’t want to pass on to surviving family members if you were to die prematurely?
Did family members pay for your education?

Don’t Take My Word for It

Life insurance is an excellent way to address these obligations, and in the case of tuition, reimburse family members for their support. But don’t just take my word for it. Instead, “do your own math.” This Life Insurance Needs Calculator can help you quickly understand if there is a need—a need you might not be aware of—that could be easily addressed with life insurance.

The most important reason for you to consider life insurance may be the peace of mind you’ll have.

In addition to addressing any financial obligations you might have, the current economic climate has made permanent life insurance an attractive means to help you build a secure long-term rate of return for safe money assets. The cash value in traditional life insurance can provide you with money for opportunities, emergencies and even retirement.

For young singles, keep in mind that you have youth on your side. I don’t mean to sound trite. Instead, I’d like you to think about the fact that purchasing life insurance is very affordable when you’re young and allows you to protect your insurability for when there is a future need—perhaps, in time, a spouse and children.

While all of these reasons are valid, the most important reason for you to consider life insurance may be the peace of mind you’ll have knowing that your financial obligations will be taken care of should anything happen.

Juvenile Life Insurance: The Whys and Hows

by Erica Oh Nataren | February 16, 2017 | Juvenile Insurance | 0 comments

As a parent, perhaps you’ve been able to check the critical financial boxes for your family. You’ve established emergency funds, secured life and disability insurance, and are on track with your retirement goals. You may wonder, is there anything else I could be doing to help my children?

This can be the time for parents and even grandparents to consider juvenile life insurance. It’s an often-misunderstood type of life insurance that provides protection for your children or grandchildren.

For some, the topic of juvenile life insurance evokes confusion and perhaps even fear. After all, why would one want to insure a perfectly healthy child?

Thankfully, the loss of a child is extremely rare. So while a juvenile life insurance policy does indeed insure against this very slim risk, some types of coverage are also designed to protect your child’s financial future—in a way no other financial product can.

3 Types of Juvenile Life Insurance

1. Juvenile permanent life insurance.This type of coverage is permanent, as long as premiums are paid, and typically accumulates cash value over the years, just like with permanent life insurance for adults. Juvenile policies are generally issued at the lowest rates available, and with limited underwriting. They’re owned by a parent or grandparent until the child is 18, at which point the now-adult insured (even if he’s still just a child in his parents’ eyes) can assume ownership.

Upon ownership, the insured adult child enjoys some distinct benefits:

Guaranteed insurability. Your daughter or son locks in a low rate and continued coverage—and can generally purchase more life insurance up to allowable limits. This may be the most compelling reason parents buy juvenile life insurance. Insurability is easy to take for granted when you have it. While most children are healthy, a future health concern could one day make your son or daughter hard to insure. This affects their entire family, who must find other ways to protect against financial vulnerability.

Cash value. The policy’s cash value grows tax-deferred over time, making it a reliable savings vehicle with some unique characteristics. If the cash is needed, the policyowner can access it through low-interest policy loans or outright withdrawals. The policy can also be surrendered for the cash value, typically minus a surrender fee.

2. Juvenile term life insurance. In contrast to juvenile permanent life insurance, juvenile term offers parents significantly less expensive coverage. However, term life insurance does not have a cash value, and only lasts for a specific length of time, such as 10, 20 or 30 years. Policyowners pay a level premium during the length of the term, at which point the term expires and coverage becomes more expensive, often significantly so.

Juvenile term coverage is typically available as a rider (basically, a coverage option) on a parent’s term policy. This rider typically lasts until your child reaches adulthood. You can often purchase coverage for all your children for the same price, with a single rider. In the event of the unexpected death of an insured, the policy’s death benefit can be used to cover expenses.

3. Juvenile group life insurance. Finally, some employers offer juvenile life insurance options through their group life insurance coverage. While convenient, keep in mind employee benefit programs can change at any time, and that in general, group life insurance can be hard or impossible to take with you if you leave your employer.

Remember, while you may have a lot of other priorities on your plate, juvenile life insurance can help create a bedrock of financial stability for your children as they come of age in an uncertain world.

The Cost of Raising a Child AKA Why You Need Life Insurance

by Maggie Leyes | February 8, 2017 | Life Insurance | 0 comments

Each year the government (the USDA to be exact) publishes how much it costs to raise a child to 18. The number is staggering. It’s more money than most of us can imagine coming up with, which is why life insurance is so important. You can cover that sum—$233,610—for a modest monthly premium. A healthy 30-year-old, for example, can get $250,000 of term life insurance coverage for 20 years for about $13 a month. That is a small price to pay for both peace of mind, and having your child be OK financially if something were to happen to you.