Life Insurance

It can be an important tool in the following ways:

1. Income replacement - For most people, their most important asset is their ability to earn a living. If you have dependents, then you need to consider what would happen to them if they no longer have your income to rely on. Proceeds from a life insurance policy can also help supplement retirement income; this can be especially useful if the benefits of your surviving spouse will be reduced after your death.

2. Pay outstanding debts and long-term obligations - Additionally, life insurance can be used so that your loved ones have the money to offset funeral expenses, credit card debts and medical expenses not covered by health insurance. Furthermore, life insurance can be used to pay off the mortgage, and help pay college tuition.

3. Estate planning The proceeds of a life insurance policy can be structured to pay estate taxes so that your heirs will not have to liquidate other assets.

4. Charitable contributions If you have a favorite charity, you can designate some of the proceeds from your life insurance to go to this organization.

5. Final Expense

None of us like to think about how our family will cover the significant costs associated with a funeral at a moment’s notice. Final Expense Insurance is one of the life insurance products that your family can use to help cover those costs.

To decide how much life insurance to buy, you need to first determine what your goals are for purchasing this coverage. Ask yourself the following:

• Do I want to spare my loved ones funeral costs and outstanding debts?

• Am I concerned that my spouse will be unable to continue to pay off the mortgage if I die suddenly?

• Do I have dependents who count on my income?

• Do I have enough savings to ensure my child(ren) can attend college, or retirement savings for my spouse, if I die suddenly?

While all situations are different, here are two scenarios to help you think through the questions you should pose to your insurance professional:

Dependents

If you have children, a spouse who does not work outside the home, or aging parents who you financially support, you have dependents. Alternatively, you may simply have a spouse, who would be unable to pay the mortgage without your financial contribution. In either case, your loved ones will no longer have your income to help them pay the bills and maintain their lifestyle in the event of your premature death. You will have to purchase enough insurance to provide for their future, while considering how much of your budget should be allocated to life insurance.

Some insurance experts suggest that you purchase approximately seven times your current income. While this may be a good way to begin estimating your family’s needs, you should seriously consider how much your dependents will need to pay for some or all the following:

• Cost of owning a home (mortgage, maintenance, insurance, taxes and utilities)
• College savings
• Food, clothing
• Child care
• Nursing home or elder care
• Retirement savings
• Funeral expenses and estate taxes

Your family may also need extra money to make some changes after you die. They may want to relocate, or your spouse may need to go back to school to be in a better position to help support the family.

No dependents

If you are young and plan to have a family in the future, you may want to consider purchasing life insurance now so that you can potentially lock in a more favorable rate.

Just because you don’t have dependents, does not mean you don’t have responsibilities. For instance, due to final expenses or other financial obligations, you may be concerned with not being an economic burden to others if you die unexpectedly. You may also want to leave some money behind to close family, friends or a special charity as a remembrance. In this case, you should purchase enough coverage to pay funeral and burial expenses, outstanding debts and tax liabilities, so that the bulk of your estate goes to your family, friends or charities.

Your insurance needs will vary greatly according to your financial assets and liabilities, income potential and level of expenses. A licensed professional insurance agent can assist you in determining the most appropriate type and amount of coverage.

There are two types of Life Insurance:

• Term Life Insurance offers simple, affordable coverage for a set time period, typically 10 to 30 years.

• Permanent Life Insurance offers coverage for your lifetime with the potential to build equity in the form of cash value and options for more flexibility.

Many people find that a combination of both types of life insurance helps them meet both immediate needs and long-term goals.

Term Life Insurance is often the most affordable coverage because it offers protection for a specific number of years. You may want to purchase a Term Life Insurance policy if you want to:

• Get maximum coverage at an affordable price.
• Cover specific financial responsibilities like a mortgage or college expenses.
• Supplement your permanent life insurance during years when your expenses are higher, such as when you have children or other dependents.

We represent the most competitive insurance carriers in the country. See how affordable term life insurance can be – call us today.

Permanent Life Insurance:

• Whole Life Insurance

A form of permanent life insurance, Whole Life Insurance features guaranteed premiums, death benefits, and cash value. Whole Life Insurance policies also offer the potential to receive dividends, which may increase the value of the policy when the insured is living or provide an increased death benefit for your beneficiaries.

You may want to purchase a whole life insurance policy if you want or need:

• Protection for life.
• Payments that stay the same each year.
• To put additional money into the policy on a tax-favored basis.
• Cash value you can use while you are living.

Whole life insurance offers confidence through the guarantees it provides.

Universal Life Insurance

Universal Life insurance policies provide the flexibility to build your policy's cash value or focus more on guaranteed protection.

Choose from two policy designs:

• Guaranteed Protection lets you choose the length of the protection guarantee and the premium payment schedule up front-both are then guaranteed not to change so long as the premiums are paid as planned.
• Cash Accumulation allows you to change, within limits, your premium payments and death benefit. It also allows you to set aside additional money in a tax-deferred way to help you meet long-term financial goals.

We represent the most competitive insurance carriers in the country. See how affordable life insurance can be – call us today.

We recommend reviewing all your insurance needs at least once a year.  If you have a major life change, you should contact us immediately.  Life changes may include:

• Marriage or divorce

• A child or grandchild who is born or adopted

• Significant changes in your health or that of your spouse/domestic partner

• Taking on the financial responsibility of an aging parent

• Purchasing a new home

• Refinancing your home

• Coming into an inheritance

Richard C. Ahern Insurance represents more than 30 highly rated insurance companies, each offering Term Life Insurance and Permanent Life Insurance.

Please contact us for more information or to request a free quote today.