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Author: Alex Roig

Life Insurance – The Basics

You know you need it. Let’s explore your options.

This month, in honor of Life Insurance Awareness Month, we’ve been talking about all things life insurance. We’ve covered some of the most common myths and misconceptions about life insurance, and the reasons why it’s so important to talk about it. Today, I wanted to address some of the basics about the different types of life insurance, and choosing the coverage that’s right for you and your family.  

First, there are two main types of coverage for you to consider: group or employer-sponsored life insurance, which is coverage that you sign up for with your employer’s human resources office, along with other employee benefits. Some employers offer basic plans at low or no cost to you, as well as options for more coverage at a higher cost. We can help you sort through what your employer offers if you’re not sure what you’re looking at. The second main type of life insurance is individual coverage that you purchase through an insurance company for yourself or a loved one.  

The most basic policy you can buy is term coverage, meaning that you lock in a certain premium rate for a certain period of time, typically 5, 15 or 20 years, or until it’s needed. Many people, after maintaining this type of policy for a number of years, opt to convert a portion to whole or permanent life insurance, which is guaranteed coverage for the rest of your life. It comes with higher premiums because of that guarantee, but it also provides the benefit to your estate and your loved ones without picking a death date, as you essentially do with term coverage. 

Additionally, whole or permanent coverage allows the policyholder to borrow from the policy, as it builds cash value over time. [Keep in mind: If tax-free loans are taken and the policy lapses, a taxable event may occur. Loans and withdrawals from life insurance policies that are classified as modified endowment contracts may be subject to tax at the time that the loan or withdrawal is taken and, if taken prior to age 59½, a 10 percent federal tax penalty may apply. Withdrawals and loans reduce the death benefit and cash surrender value. Guarantees subject to the claims paying ability of the underlying issuer.] 

Life insurance can be confusing, I know – and we see many people who forgo coverage simply because they don’t take the time to understand the process and options that are available. Many people also think life insurance is too expensive, but, as I noted in my last newsletter, statistics show that most people believe coverage costs much more than it actually does.  

If you have any questions at all about life insurance, need to apply for coverage, or would like to sit down with our team and review any current policies you have, please, don’t hesitate to pick up the phone. A 10 or 15 minute consultation could mean peace of mind for your family. 

Myths & Misconceptions About Life Insurance

September is Life Insurance Awareness Month, and today I wanted to talk about the most common myths and misconceptions we hear about this important part of your comprehensive financial plan. I know it’s difficult to think about the unthinkable, but having the right coverage can keep a loss from becoming a financial burden as well.

Preparing for Fall – Kids & Money

As hard as it is to believe, the first day of school is less than a month away in Fayette County. Although we want you all to fully enjoy the remaining weeks of summer, I would encourage you parents out there to take a little time and think about your strategy regarding your kids and money. Especially as the little ones get older, it might to be time adjust a few things and get them more involved and thinking about how money works.

Experience Value vs. Actual Value

A couple of years ago when my older son, Carter, was about 5, we went to Sesame Street Live! with a couple of other families. Carter had saved some money in his piggy bank and wanted to take some with him for candy. So, we got out some change and exchanged it for paper money. At the show, Carter was sitting with two girls about his same age when he spotted cotton candy vendor. My son flagged him down, and when the vendor got there, Carter announced, “Don’t worry girls, I got this!” At which point he paid $16 for about 4 cents worth of sugar and air.

Kids & Sports

Here we are at the time of year when school is almost out and kids are gearing up for an active summer. I know with my two boys, it seems like each year their energy levels just go up and up and my wife and I put them in more and more sports and activities to keep everyone busy.

Monsters Under the Bed

Halloween is less than a week away, and if you’ve got young kids like I do, your house is probably well into the preparation of costumes, and all the excitement that comes with the prospect of free candy. Although Halloween costumes today aren’t as scary as they used to be, watching my kids get ready to dress up and scare away spooks has me thinking about some of the things that keep our clients up at night.

Types of Life Insurance

You may have noticed we’ve been talking about life insurance this month. Each September is designated as Life Insurance Awareness Month by LifeHappens.org, and we always take the opportunity to further educate our client families by sharing stories and information.

Retirement vs College Savings

After well over a decade in this business, we see certain topics over and over again when we sit down with clients in our conference room. Two of the most common goals people have are saving for retirement and saving for college, and the two can often feel at odds with one another, In most cases, saving for college feels more difficult than saving for retirement, and there are several reasons for that.

Time to Review Employer-sponsored Retirement Plans

Many of our clients at Family Financial Partners are business owners, and that comes with its own set of financial considerations. For those of you who fall in this category, January is often the best time to review or implement your employee retirement plan. A solid benefits package can help your business land the top talent you want, but keep in mind that there’s no one-size-fits-all when it comes to the perks you might want to offer.

Focus on your Finances

Whether we participate in the annual ritual or not, we’re all aware of that thing called spring cleaning that happens each year (or does it?) when the weather finally starts to warm up. Well, with the first snow of the year predicted for this week, now is a good time to hunker down and tackle a winter cleaning – for your finances.

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