Life Insurance in Jacksonville, FL
Although we all know why life insurance is important, many of us choose to ignore the reality of what would happen if we suddenly died without proper protection. Consequently, the results are devastating for surviving family members who are left with a large bill for your final expenses, or even worse, loss of the family home because of the inability to cover the mortgage. Do not feel bad if you don’t currently have a life insurance policy, you are not alone. According to life insurance statistics, about 43% of the population isn’t covered with a life insurance policy. However, the study found that most of us are in desperate need of a life insurance policy. Nearly 1/3 of Americans would feel the loss of the primary earner in the household within the month.
Insurance Through Work Won’t Suffice
Michael and Patrice were happily married with three kids. Michael had a great paying job and earned an annual salary of $150,000. His employer provided two years’ salary in life insurance, which Patrice (who handled the finances) thought was sufficient until she talked to her friend Evelyn who was an insurance agent. Evelyn advised her that coverage through work is a nice bonus, however, it’s not a good idea to rely on it. In the event that Michael resigned, was fired, or laid off, his life insurance coverage would go away. In addition, if 10 years had gone by, coverage would be more expensive because Michael would be 10 years older. KFS recommends keeping a life insurance policy separate from any coverage offered by your employer. Patrice took Evelyn’s advice and purchased a $750,000 term life insurance policy with a 25-year term and return of premiums. The coverage level would give her enough money to pay off their mortgage, put the kids through college, and grant her financial relief if something happens to Michael.
Don’t Leave Your Kids Holding the Bag
Brenda, a single mother, knew it would be a good idea to buy life insurance to protect her daughters, but something always seemed to get in the way. Financial constraints or time was tight, and she just never got around to it. Years later, Brenda purchased a small home; her middle daughter was then 18 years old and her youngest was 14. Although she wasn’t living paycheck to paycheck, her budget was strained and made it difficult for her to save. One night while Brenda was driving home from work, she was struck head-on by a drunk driver and when she arrived at the hospital, she was pronounced dead. While Brenda’s daughters were forced to deal with their tragic loss, they also had to deal with the fact that she only left behind a few hundred dollars in the bank with no life insurance, leaving them responsible for gathering funds to cover her funeral expenses. Hence the reason why life insurance is important. No one is able to predict the unexpected curveballs life often brings our way. If you die unexpectedly, you can leave your spouse or children in a financial bind. Contrary to popular believe, term life insurance is extremely affordable. A 20-year policy with a death benefit of $250,000 for a healthy female can cost as little as $50 a month.
Life Insurance Can Protect a Business If a Key Employee Dies
Roland started an information technology company when he was 20 years old. Over the years, it grew into a multi-billion dollar business that was consistently on the cutting edge of technology, introducing many innovative products. Even though Roland employed thousands, he was very hands-on and was responsible for most of the company’s inventions. Roland’s board of directors was concerned that if something happened to him, the company would suffer a tremendous financial loss. They felt that a key man insurance policy was needed. A key employee life insurance policy is put in place to protect a business from losses in the event a valuable employee dies. The company decided to take out a very large life insurance policy on Roland, against his strenuous protests, because he felt he’d die of old age. Unfortunately, he was wrong and passed away a few years later after suffering a massive heart attack. After his death, the company’s sales and the stock value immediately plummeted, but the death benefit from the life insurance policy kept the company afloat for the next 12 months while the new CEO restructured the company and regained the investor’s trust.
Stay-at-Home Parents Need Insurance Too
Rashaad and Nikki have been married for ten years, and for most of that time, Nikki has stayed home with the kids while Rashaad has been the primary breadwinner. Although Rashaad earns a good living, Nikki would struggle to cover the cost of a nanny or another childcare provider if something were to happen to Rashaad. Nikki provides a variety of services to the family: childcare, transportation, managing the household, and their finances. Nikki also earns a small income babysitting other children around the neighborhood. They decided that in the event something happened to Nikki, a life insurance policy would ensure that Rashaad would have enough money to hire the necessary help or take a few years off to stay at home with the family as they coped with their loss. Nikki purchased a 20-year term policy with a death benefit of $750,000 that will give her the financial means to replace the services Rashaad provided for the family as well as cover the cost of kid’s college expenses to they both purchased a 20-year term policy on each other with a death benefit of $750,000 that would give them financial means to replace the service that they provided for the family as well as cover the cost of the kid’s college expenses.
Life Insurance Can Ensure Your Business Survives
Todderick and Christopher started a business together that grew into a successful enterprise. Antonio, their financial advisor, recommended using whole life insurance policies to make sure that if one partner passed, their family would be taken care of, and the business would survive the loss. Both Todderick and Christopher purchased a $1 million whole life policy on each other. Years later Todderick was killed in a motorcycle accident. Christopher received the death benefit from Todderick’s life insurance policy, which he used to buy the other portion of the company from the deceased’s family members. This arrangement allowed Todderick’s family to be fairly compensated for his half of the business, while it enabled the business to survive without taking the major financial hit of paying off Todderick’s family. This is called a buy/sell agreement and is a fairly common arrangement for small business partners.
Top Reasons Why Life Insurance Is So Important
- Pay Off Debts: A life insurance policy can pay off any debts and prevent the responsibility of burdening your family. Debts such as a mortgage, credit cards, auto loans, and funeral expenses can have a dramatic impact on your family and their lifestyle.
- Provide for Your Kids: A life insurance policy will ensure that your children’s college expenses are covered, that they can buy a home, and even pay for their wedding if you pass unexpectedly.
- Peace of Mind: A term life insurance policy is a cost-effective way to give you and your family members peace of mind, knowing that they will be protected if something happens. You will no longer have to worry about their financial future and can rest peacefully knowing they will be able to continue their current lifestyle.
- Funerals Are Pricey: An inexpensive funeral can cost $7,000-$10,000. A small life insurance policy will make sure your final expenses are covered so your family doesn’t have additional worries during their time of mourning.
- Supplement Your Retirement: Permanent life insurance policies accumulate a cash value over the life of the policy that can be borrowed against tax-free. These policies can be used to supplement your retirement if your other investments fall short. However, these policies often come with high fees, so be certain to complete a price comparison with other investment vehicles.
- Protect Your Business: Regardless of the way you decide to use a life insurance policy, remember it also be a beneficial asset for your business!
Where Can I Get Life Insurance?
If any of these stories struck a chord and you are considering a life insurance policy, you are in the right place. Our licensed insurance professional agent can help you assess your specific risks and financial goals before recommending a policy. Whether you need a term or permanent policy our agent will do the research for you, gather quotes, and present you with various options that will provide coverage for your family needs. Start protecting your family today, contact Kinsey Financial Services now.