Think you have enough life insurance coverage?
According to a recent 2013 study performed by The Futures Company there’s a very good chance that you do not. This study found that Americans only have enough life insurance to provide for their family for three years after the policy is used. But how much would someone need to make sure their families are well provided for? The study says that most policies fall over 300 thousand short of what’s needed. And perhaps the worst thing the survey revealed was the fact that the policyholders were unaware on how little life insurance coverage they truly had. You can read more about the survey from this post on Abendowment.org.Read More
Long Term Care
As insurers endeavor to make long-term care policies more affordable, some are developing new products that combine long-term care insurance with life insurance. These life insurance hybrids require an investment in a lump sum or payment of premiums for ten years, after which the insured receives either long-term care payouts or their heirs receive a death benefit. For instance, a 60-year-old would invest $50,000 and, in turn, could receive payouts of up to $216,000 (up to $3,000 per month for six or more years) for long-term care in a nursing home or assisted living facility or at home. If he or she were to die before long-term care is needed, his or her heirs would receive a $72,000 benefit.
NOTE: In the insurance hybrid mentioned above, funds used for long-term care reduce the death benefit to heirs.Read More
Which Life Insurance Policy Will You Need?
One way to calculate how much life insurance you need involves figuring how much investment capital it would take to replace all of your income for two decades or longer if it were invested in secure Treasury/municipal bonds and certificates of deposit. Another approach focuses on four categories of need. The first, funeral/burial expenses, ensures that beneficiaries will receive up to $20,000 in tax-free proceeds faster than they would from an estate. Next, mortgages and other debts are taken into account so that surviving members don’t have to face the prospect of needing to sell the family home. Lastly, add the (future) cost of education as well as your current pretax earnings (until retirement) to your family’s income replacement needs.
NOTE: Use the calculation of need in the above four expense categories to get an estimate of how much life insurance is appropriate, then fine-tune the numbers to reflect personal circumstances.Read More
All about Life Insurance Policies
Aside from having a face value (the amount paid to beneficiaries upon death), a permanent life insurance policy also has a cash value, which is a savings account funded by a portion of the policy’s premiums.Read More
Does an emergency in life present the need for some extra money?
Did you know that aside from having a face value for your life insurance policy (the amount paid to beneficiaries you have named upon your death) – the policy has a cash value that you can use without surrendering the policy? This occurs when policies have been held long enough for their cash value to accumulate to a large enough amount that you can borrow against it tax free. The interest rate usually is at market rates. If you don’t repay it, the final death benefit is then reduced by the total amount you withdraw. Call Scott Insurance to determine if this is available on your current policy – and receive a review of your situation to see if it is a good idea.Read More
The Sobering Facts of Intoxicated Driving
While underage drinking itself poses a serious threat to the health and welfare of our youth and teens, combining underage drinking with driving produces even more disastrous consequences. The Centers for Disease Control and Prevention show that half of the drunk-driving accidents involving teenagers are reported on Friday, Saturday or Sunday and that half of these crashes occur between 3:00pm and 12:00am. This might give concerned parents some ammunition to say no or set limits when their son or daughter ask for the keys to go to a party-on-the-weekend – especially concerning rising auto insurance rates. Teens driving and drinking constitute close to half of all alcohol-related fatalities in this country. Especially during the holiday season, remember to share these “sobering facts”.Read More