It’s not exactly fun to contemplate your own demise. But if you want to make sure your loved ones are taken care of, sometimes you must.
We’re talking about life insurance, of course.
Life insurance seems like a pretty straightforward thing. You pay your premiums and when you die, your heirs receive a pay out from your insurer. That’s all true, but life insurance is more than that, and you’ll want to know several things about this crucial financial product.
Boca insurance company Seeman Holtz can help you get the life insurance that most closely suits your needs. Here are a few things to think about when you think about life insurance.
Do you really need life insurance?
They short answer is most likely, “Yes!” If you have someone who depends on you and on your livelihood, you need life insurance. As personal finance expert Tim Maurer writes in Forbes:
“It’s virtually obligatory if you are a spouse or the parent of dependent children. But you may also require life insurance if you are someone’s ex-spouse, life partner, a child of dependent parents, the sibling of a dependent adult, an employee, an employer or a business partner. If you are stably retired or financially independent, and no one would suffer financially if you were to be no more, then you don’t need life insurance. You may, however, consider using life insurance as a strategic financial tool…
“Strategically, it helps those left behind cover the costs of final expenses, outstanding debts and mortgages, planned educational expenses and lost income. But most importantly, in the aftermath of an unexpected death, life insurance can lessen financial burdens at a time when surviving family members are dealing with the loss of a loved one. In addition, life insurance can provide valuable peace of mind for the policy holder. That is why life insurance is vital for the bread winner of a single-income household, but still important for a stay-at-home spouse.”
As Boca insurance company Seeman Holtz puts it:
Life Insurance is one of the most important investments you can make. It is an investment in yourself and the future of your loved ones, and it is a way to secure your financial responsibilities to your family. Your life insurance policy can be used to pay off debts and estate taxes, provide money for continuing mortgage payments, and keep your business up and running upon your passing. At Seeman Holtz Property and Casualty we are happy to help you with all your Life insurance needs.
“Get peace of mind knowing that your finances and beneficiaries are secure – from temporary to permanent insurance coverage. At Seeman Holtz Property and Casualty, we understand that as things in your life change, so will your financial and insurance needs. With fluctuating rates of return and overlooked lapses in coverage, it’s important to regularly review and evaluate your life insurance program with a specialist you can trust.”
Boca insurance company Seeman Holtz’s experts are available to review your life insurance needs with a professional you trust.ins
How much life insurance do you need?
It’s possible you need more life insurance than you think. The Consumerist writes:
“A $1 million dollar policy may seem like a lot, but if you have a spouse and two young kids who aspire to college someday, and you have some debt, $1 million may not get them very far if you want them to maintain the lifestyle they’ve become accustomed to.
“How much coverage you need depends on your salary, whether or not your spouse works, if you may need child care, and the debt you may leave behind: college tuition, credit card bills, a mortgage, and more.“
Don’t let that scare you, though. As Maurer writes in Forbes:
“It’s more important to get set up with something you can comprehend than it is to push off an important decision due to life insurance’s intimidating complexity. In the vast majority of situations, a household would be well cared for simply by buying enough life insurance to replicate all or most of the insured’s income for a term as long as the household expects to need that income.”
This is one of the areas the professionals at Boca insurance company Seeman Holtz can help with.
What type of life insurance product do you need?
There are a few different kinds of life insurance, and choosing between them can be difficult. Maurer writes:
“Term life is the simplest, the least expensive and the most widely applicable. With term life, a life insurance company bases the policy premium on the probability that the insured will die within a stated term—typically 10, 20 or 30 years. The premiums are guaranteed for the length of the term, after which the policy becomes cost-prohibitive to maintain or you decide to let it lapse. Yes, this means that you may very well pay premiums for decades and “get nothing out of it.” But that’s good news, because it means you’re winning at the game of life.
“Permanent life insurance includes this same probability-of-death calculus, but also includes a savings mechanism. This mechanism, which is often referred to as “cash value,” is designed to help the policy exist into perpetuity. Whole life—the original—has an investment component much like bonds or CDs (but backed by the insurance company). Variable life offers investment options more like mutual funds. Universal life was designed as a less expensive permanent life insurance alternative with added flexibility, but increased interest rate risk for the owner. Although they tend to be more complex and expensive, there are financial dilemmas—often related to business planning and/or high-net-worth estate planning—for which permanent life insurance may be the only solution. There are a few select instances where permanent policies are engineered to maximize the tax-privileged growth of cash value. They are, however, only appropriate for a small number of people and still dependent on numerous other factors to work the way they’re intended.”
To determine which of these works for you, check in with your representative from Boca insurance company Seeman Holtz.