It's important to make sure you have adequate life insurance - Ahwatukee Foothills News: Money

default avatar
Welcome to the site! Login or Signup below.
|
||
Logout|My Dashboard

It's important to make sure you have adequate life insurance

Print
Font Size:
Default font size
Larger font size

Kim DeVoss

Related Stories

Posted: Wednesday, February 1, 2012 4:00 pm

Valentine's Day is almost upon us. To celebrate, you may want to present your loved ones with chocolates, flowers, or any number of other traditional gifts. But if your valentine also happens to be your spouse or your life partner, you also might want to show your love in another way - by making sure you have adequate insurance.

Just consider some of the things that life insurance can do for you and your family:

• Pay off your mortgage. With sufficient life insurance, your family can remain in their home should anything happen to you.

• Educate your children. College is expensive, and it seems to get more costly every year. If you were to die prematurely, your life insurance proceeds could help pay for your children's education.

• Help fund retirement. Term insurance consists of just a death benefit. But "permanent" insurance policies, such as whole life or universal life, are a tax-advantaged savings component that could help pay for your retirement and help keep you financially independent - which means you won't have to worry about being a "burden" to your grown children. Furthermore, proceeds from your life insurance policy could help your surviving spouse retire more comfortably.

• Help protect your business. If you're involved in a family-owned business enterprise, you can structure a life insurance policy to help preserve the business or transfer it to the next generation.

• Pay for estate taxes. If your estate is sizable, it could generate estate taxes. Life insurance proceeds can help your heirs pay these taxes.

Clearly, life insurance offers a variety of benefits. But how much do you need? And what type do you need? You might hear that your coverage should be worth around seven or eight times your annual salary. But there's really no one-size-fits-all formula. In determining how much life insurance you require, you should consider your age, your income, the size of your family, the amount of your mortgage, whether your spouse has a retirement account, your financial goals and other factors. Your financial advisor can help you assess these variables to determine the appropriate level of coverage.

One final word on life insurance: Don't wait too long before purchasing a policy or upgrading your existing one. Your life insurance premium is based, in part, on your age, so the sooner you act, the better. Also, the time to buy life insurance is while you are healthy, because poor health could prevent you from obtaining coverage.

As important as it is, life insurance isn't the only protection you and your loved ones may need. During your working years, you are actually more likely to become temporarily disabled, due to injury or illness, than you are to die. If you weren't able to work for a while, you could help your family maintain its lifestyle if you had an adequate disability income insurance policy. Your employer might offer you some coverage as a benefit, but it might not be sufficient, either in terms of income or the length of the disability covered. Consequently, you may want to explore an individual disability insurance policy.

When you think of romantic Valentine's Day presents, "insurance" probably doesn't pop up right away. Yet, by making sure you've got all the coverage you need, you may actually be giving your loved ones the greatest gift they'll ever receive.

This article was written by Edward Jones for use by Ahwatukee Foothills Edward Jones Financial Advisor Kim DeVoss, CFP. Reach her at (480) 785-4751 or Kim.DeVoss@edwardjones.com.

More about

More about

More about

  • Discuss

Syria's civil war: 'Dozens killed' in Deir Az Zor raids

Fighting began in 2011 after government crackdown on protesters Over 250,000 Syrians killed and even larger number wounded so far Almost 11 mi…

Published: June 26, 2016 - 7:35 am @ http://www.aljazeera.com/news/2016/06/syria-civil-…

New York's Latest Anti-Airbnb Effort Could Violate First Amendment

An effort backed by unions and the hotel industry might succeed in shutting down Airbnb in New York. Doing so might require the state governme…

Published: June 26, 2016 - 6:50 am @ http://reason.com/archives/2016/06/25/new-yorks-la…

How a college drug ring hid in plain sight

It was one of Charleston’s bigger drug busts: A network of present and former College of Charleston students and other 20-somethings accused o…

Published: June 26, 2016 - 5:53 am @ http://www.postandcourier.com/article/20160624/PC1…

Peoria Police Department

@PeoriaPoliceDepartmentArizonaPublicSee more of Peoria Police Department - Arizona by logging into FacebookMessage this Page, learn about upco…

Published: June 26, 2016 - 5:51 am @ https://www.facebook.com/PeoriaPoliceDepartmentAri…

Inside story on where NORML is headed as America gets legalized

ASPEN — When there’s a meeting of the marijuana minds in the heart of the Colorado Rockies, expect to be enlightened. The National Organizatio…

Published: June 26, 2016 - 5:51 am @ http://www.thecannabist.co/2016/06/23/norml-aspen-…

(1) Macroecology of land plant biodiversity: Niche evolution and ecological limits; (2) Tropical Ecology: Experimental Trait-based ecology of tropical forest ecosystems

The Enquist lab has positions for two new postdoctoral positions to start fall 2016 (1) Postdoctoral Position –  Macroecology of land plant bi…

Published: June 26, 2016 - 5:23 am @ https://brianjenquist.wordpress.com/2016/06/23/two…

Central Ore. LGBT Community Gathers in Grief, Pride

One Year Later: The Marriage Equality Supreme Court Decision NY’s LGBT Community Marches in Solidarity with Orlando

Published: June 26, 2016 - 5:21 am @ http://www.publicnewsservice.org/2016-06-24/lgbtqi…

Arizona Authorities Say 3 Missing Women Met Same Man Online

With her Arizona home sold and most of her belongings packed up, Nancy Rae Hartz was ready to spend her golden years on the road. Having been …

Published: June 26, 2016 - 5:21 am @ http://www.theblaze.com/stories/2016/06/25/arizona…

Phoenix police investigating after two adults shot

PHOENIX - Police are investigating after two adults were shot at an apartment complex Saturday night.

Published: June 26, 2016 - 5:04 am @ http://www.abc15.com/news/region-phoenix-metro/sou…

Air strikes kill civilians in Syria's Deir Az Zor

Syrian and Russian air strikes have killed at least 47 people, including 31 civilians, in an ISIL-held town in eastern Syria, a monitor has said.

Published: June 26, 2016 - 5:03 am @ http://www.aljazeera.com/news/2016/06/air-strikes-…

Facebook

ahwatukee.com on Facebook

Twitter

ahwatukee.com on Twitter

RSS

Subscribe to ahwatukee.com via RSS

RSS Feeds

Spacer4px

Most Popular

Online poll

Loading…