Should Your Children Have Life Insurance?

Life insurance is something most adults don’t even think twice before buying. By the time you’re an adult, life insurance is necessary because you’ve got bills to pay, and you own assets such as a car or home, in addition to possibly having a family. So, you naturally want your family to be taken care of in the event that something were to happen to you. Owning life insurance helps with this. But, what about your children? Do they need life insurance, too?

For some people, life insurance for your children is a great, low-cost way to set money aside for the future. Many permanent life insurance plans money market or investment accounts, along with the life insurance policy. By selecting one of these plans for your child, you can begin to more closely assess their financial future, knowing there is less concern because you’re saving money via a life insurance policy now. Also, this way your children will have life insurance as an adult, in case an illness or other medical later in life makes them uninsurable. And if your family has a long history of serious medical problems or death due to a medical condition, the purchase of life insurance for your child or children now could help make sure they’re not denied for insurance coverage later in life.

Those who don’t think life insurance for children is a good thing say it's an outdated product that has been replaced by more effective savings tools, such as 529 plans or other college savings plans. And, still others say that since the purpose of insurance is to replace income, it's illogical to sell life insurance to someone who doesn't have a regular, professional job.

Whatever the reason, it is reported that saving for a child via life insurance just isn’t a practical idea for many people, and only 15 percent of children under the age of 18 have life insurance. Additionally, life insurance policies on children under the age of 18 are typically around the amount of $5,000.

The most common way life insurance is purchased for a child is in cooperation with a 529 fund and perhaps other investment funds such as Roth IRAs. The parents who do opt to purchase life insurance for their child often are motivated by the idea that this way, their child will always have some type of insurance coverage.

Since life insurance premiums are partially decided on using income and earning potential, this can get tricky when trying to determine what a child’s life insurance premium should be. However, many experts suggest basing your child’s future earning capabilities off of your own. This way, you’re at least making an educated guess about your child’s earning potential.

Life insurance can be tricky for adults and especially when considering it for children. It’s always best to consult with a life insurance professional before tackling one of these pivotal decisions, so you can more forward with confidence in your investments and yourself.

 

Visit Pivot.com - your life insurance marketplace, for a free, no obligation life insurance quote today! 

How Will My Life Insurance Policy be Processed

Life insurance can sometimes be an overwhelming thing to consider. When you’re purchasing life insurance, it’s important that you and your loved ones know what to expect. You should fully understand your life insurance options so that you make the best decision for yourself and your family - and your family’s future. As your life changes and you move through life’s pivotal moments, you should have life insurance that protects you every step of the way.

Many people wonder what happens when you apply for life insurance. But first, let’s go through the basics. Whether you have a family or even if you live alone, purchasing a life insurance policy is a smart decision because it can protect the assets you own, such as your home and your retirement accounts. Buying a life insurance policy may involve some knowledge of the life insurance industry, but it doesn’t have to be overly complicated. Take a moment to learn the basics of buying a life insurance policy. You’ll likely be surprised about how easy it is to learn about the different life insurance types and to purchase the right life insurance to protect your family’s future.

So first, when should you buy life insurance? It’s never a bad idea to have life insurance in general. But you should especially consider purchasing life insurance when you encounter one of life’s pivotal moments, such as getting married, purchasing your first home, or having your first child. Life insurance is meant to take care of your financial obligations and your loved ones in the event that something happens to you. If you have any financial obligations or if you’re responsible (at least in part) for the well-being of someone else, such as a spouse or child, it’s time for you to consider life insurance.

There are two primary life insurance types: permanent and term. Permanent life insurance policies usually run from the time of purchase until the event of death, regardless of age. Permanent life insurance are often more costly compared to other life insurance types, but there is stability and peace of mind offered by permanent life insurance because you never have to worry about renewals. Term life insurance policies are often more affordable, but only cover a specific time period, such as from purchase until the age of 65. Term life insurance policies are often more affordable than permanent life insurance policies, so that’s what most people opt for. However, with a term policy, you must be prepared to renew the policy with updating policy pricing once the original term policy is about to expire. If you’re someone who doesn’t like to deal with the uncertain, a permanent policy may be a better fit for your than a term policy.

There are also variations of each type of life insurance policy, so when you’re working with your life insurance specialist, you can typically customize your life insurance plan to fit your specific needs and budget. For example, two variations of permanent life insurance are whole life insurance and universal life insurance. Whole life insurance combines your life insurance policy with an investment fund, and universal life insurance combines your policy with a money market investment. For a term life insurance plan, there is no investment component, making it more affordable in most cases.

After you’re requested a life insurance quote and gone over all the policy types with your life insurance specialist, you will apply for the policy by filling out your identifying information. You most likely will need to take a medical exam, and you’ll go through a phone interview as well. The medical exam often takes the longest during this time, because the customer must schedule the exam and the physician’s office must schedule the exam and find time to complete the paperwork. When you have your medical exam, it’s imperative that you have all paperwork ready for the physician, so they can move you through the process quickly and efficiently. After your medical results and interview questions are complete, you’ll work with the life insurance underwriter to go through the approval process, which normally takes 1 to 2 months. After your medical exam, interview questions, and other information is reviewed by the insurance company, your life insurance specialist will notify you regarding whether or not you’ve been approved.

Once you’ve reached the life insurance approval point, a few things can happen. Your application might be approved at the same rate that was quoted, your life insurance application might be approved at a better rate than was quoted, or your life insurance might be approved at a higher rate than was quoted. Or, it’s possible that your life insurance application will be denied. Whatever happens, a life insurance specialist should be able to walk you through the options you have available to you, or the reasons why a certain outcome happened. If you’re approved, and if you decide with the life insurance specialist how you want to move forward, your policy will be briefly reviewed once more, and typically you’ll be asked to pay your first month’s premium. After that, your policy will go into effect and your coverage will start!

One of the best things about working with a modern life insurance company is that you can pay your life insurance premiums annually, semiannually, quarterly, or in monthly payments, and usually this can be done online or through auto-deduction. Typically, there is no need for paper checks, stamps, and envelopes. Everything can be handled by the few clicks of a button!

Life insurance is something that anyone who owns assets or has a family should consider. The types of life insurance are easy to understand, and the way that your life insurance policy is processed is fairly simple. As long as you do your homework so to speak, and provide your life insurance specialist with the information they need, determining the right life insurance for you and your family doesn’t have to be scary. Think of life insurance as a security blanket, safeguarding your family’s future.

 

Learn more at Pivot.com, the life insurance marketplace, for a free life insurance quote today! 

Life Insurance in Unemployment

Life insurance is important at any stage in life, but especially when you have a family and assets that you want to protect. Life insurance doesn’t lose any importance when you’re laid off from work. Just because you temporarily don’t have an income, it’s still just as important to protect your home, family, and other items of significance through life insurance.

In most cases, when your employer ends your employment, the life insurance coverage that you received from your employer ends on your last day of your employment. Although not all employers offer life insurance coverage, very often many employers do offer one or two times an employee's salary in life insurance benefits. So, if you have a life insurance policy through your employer and then restructuring or layoffs happen, and you’re let go from your place of employment, life insurance then becomes your responsibility. It’s important not to let your life insurance coverage lapse and since continuity of life insurance benefits is not guaranteed through COBRA laws that provide health coverage, getting your own life insurance coverage is even more crucial to ensuring the safety of your family’s future.

Life insurance can appeal to many people in a variety of situations. After a layoff, if you’re a single person with no debt and no assets, life insurance may not be a practical expense - at least not until you’re fully employed again. However, if you own any assets such as a house, or if you have any debt such as student loans, life insurance may still be a wise decision even if you have a limited number of other responsibilities. And, if you have a family that you are responsible for providing for, life insurance is definitely something you want to consider, regardless of your employment status!

So what are the types of life insurance that are most beneficial to you? Essentially, there are two types of life insurance policy types for you to consider: whole life and term life insurance policies. Whole Life Insurance policies are typically more costly, but you accrue equity in these policies over the life of the policy through money market funds. This is helpful because at any time, you can cash out of the value accrued in these policies, but as a result of this benefit, these life insurance policies typically have higher premium costs.

Term life insurance policies usually provide the best bang for the buck. For a smaller premium than whole life insurance policies, you still have coverage over your assets and family members, but you don’t accrue any equity in the policy over time. In both types of life insurance policies, your premium is determined by amount of coverage you want, your age, and your health. Term life insurance is typically the more practical type of life insurance to purchase, and this would be easiest to maintain during a period of unemployment.

For the best type of life insurance for you, contact your local insurance professional to learn more.  Visit Pivot.com for a free, no obligation life insurance quote today! 

The Basics to Buying a Life Insurance Policy

Life insurance can be an overwhelming thing to consider, but it doesn’t have to be that way. Suze Orman, a financial advisor and television host, once said, “If a child, a spouse, a life partner, or a parent depends on you and your income -- you need life insurance.” Ms. Orman is correct, of course -- and there’s more you should know. Even if you live alone, purchasing a life insurance policy is a smart decision because it can protect the assets you own. Buying a life insurance policy may involve some industry knowledge, but it doesn’t have to be overly complicated. If you take a moment to learn the basics of buying a life insurance policy, you may be surprised about how empowered you feel when you decide to purchase life insurance and protect your family’s future.

When should you think about buying life insurance?

 Life’s Pivotal Moments are usually when life insurance should be considered, or reconsidered if you already own a policy.

What are Life’s Pivotal Moments?
Those are the times in life when the fundamentals of your life or lifestyle change, such as the purchase of your first home, a promotion at work, or getting married. Life insurance helps protect your family’s financial future if you were to pass away. While this can be difficult to think about, it’s important to gain the peace of mind that life insurance can offer. Life insurance is built to provide for a family after a death, and is a way for you to ensure that your family is able to live their life to the fullest -- even if you are not there physically to provide for them.

There are different types of life insurance you should consider. Permanent life insurance policies usually run from the time of purchase until the event of death, regardless of age. Term life insurance policies are often more affordable, but only cover a specific time period such as from purchase until the age of 65. There are also variations of each type of life insurance available, so you can typically customize your life insurance plan to fit your specific needs and budget. Two variations to permanent life insurance are whole life insurance and universal life insurance. Whole life insurance combines your life insurance policy with an investment fund, and universal life insurance combines your policy with a money market investment. For a term life insurance plan, there is no investment component which often makes term policies more affordable for many people. If you decide to go with a term life insurance policy, it is imperative that your length of coverage is carefully planned and calculated to your family’s specific needs. Working with a life insurance specialist will help you ensure that your family is covered no matter which type of life insurance policy you decide to buy.

This brings up another important topic: how much life insurance should you purchase? An industry standard is to purchase enough life insurance to replace five to seven years of your salary. But of course, it’s not quite that simple. You may feel the need to purchase more than five to seven years of your salary if your family has additional debts or assets such as a mortgage, or if you’re planning for college funds for young children. Reasons like this are why there are variations in life insurance policies - so that after your family’s needs are determined, you can purchase the life insurance policy and options that best fulfill your family’s future needs.

What if you can’t afford life insurance?

This may sound cliche, but when it comes to life insurance, you can’t afford not to be covered. Your family is likely the most important thing in your life, so ensuring their financial stability in the event of your death is invaluable. However, a policy that you can’t afford and doesn’t work with your budget doesn’t help anyone. Even though all the options for life insurance policies may seem overwhelming, there’s a benefit to this. You can buy the amount of life insurance that works for you - and having some life insurance is better than not having any at all. A life insurance specialist can closely examine your family’s financial situation and the life insurance market, to help you buy the best coverage at the lowest cost. Your life insurance specialist can also help you identify when it might be right in the future to purchase more life insurance, or how you might alter your life insurance policy down the road.

When it comes to purchasing life insurance, you should do what works best for you and your family. It’s best to work with a professional life insurance advisor, and remember that buying life insurance now gives you peace of mind and stability for the years ahead.

 

Learn more at Pivot.com - Your Life Insurance Marketplace for Life's Pivotal Moments for a free life insurance quote today! 

Life Insurance Tips for Those Just Starting a Family

If you are just starting a family, life insurance is probably the last thing on your mind. When you’re preparing to be a first-time parent, you’ll likely have a few overwhelming moments, but purchasing life insurance (or purchasing more if you already have it) shouldn’t be one of them! There are many things new parents have to consider when it comes to starting a family -- car seats, strollers and cribs are just some of the immediate decisions you’ll have to make. But, if there’s one thing that shouldn’t be a tough decision, it’s whether or not you need to purchase life insurance or buy additional life insurance. If the size of your family is increasing, so should your life insurance policy. It’s as simple as that!

Why is it important to make sure you have the right amount of life insurance for your growing family?

Starting a family is one of Life’s Pivotal Moments.

But, what are Life’s Pivotal Moments? They’re the scenarios that are sometimes monumental and sometimes subtle, but they can change your life forever. For example, getting married, having a baby, getting promoted at work, and deciding to retire are all pivotal moments that can affect your life -- and your life insurance policy. Adding a child to your family changes your budget and increases expenses. On the base, surface level, a baby means that there will be a person in your life who is totally dependent on you for everything. Since your life insurance policy is meant to cover your family, you’ll most likely need to increase your policy’s benefit so that each member of your family is covered for the foreseeable future. Or, if you don’t have a life insurance policy yet, starting a family is the perfect time to buy life insurance.

Besides the sleepless nights and endless loads of laundry, new parents may decide to change other aspects of their family’s life. For example, the size of your home may increase, or you may need to trade in your small car for a larger and safer vehicle. These changes may increase your monthly budget, as well as the amount of debt you intend to take on. Deciding to start a family also typically means a college education to plan for. Increasing your life insurance policy, or buying your first life insurance policy, is one way you can financially protect your family, now and even after you’ve passed away.

There are many options for life insurance policies, and young families are at the prime age for buying. Since young families are often in good health, they can qualify for lower premiums!  Deciding on the right life insurance policy for you can be confusing, but partnering with a knowledgeable PivotCare team professional will help you navigate the life insurance landscape and purchase the policy that’s the right fit for you and your family.

Should You Have Life Insurance After Retirement?

There are many times when life insurance should be reconsidered or reevaluated. These times are sometimes referred to as pivotal moments - those instances when you’ve reached a turning point or a milestone, and when the foundation of your life changes. Having a baby, buying your first home, or even getting a promotion at work are just a few of these pivotal moments. Another of these moments is when you decide to retire.

Your retirement is most likely something that is well thought out, and it often seems like a long time coming. Life insurance, even though it may not be top-of-mind during this time, is something that should be considered or reconsidered carefully when you decide to retire. In part, this is because retirement can be a challenging stage in life, a stage that is often met with many changes in lifestyle, especially when it comes to day-to-day life.  And, these changes affect not only your expectations but the expectations of your loved ones as well. Life insurance, and whether or not you make changes to your life insurance policy, is one of the things you should evaluate when retirement is on your horizon. After all, retirement is well deserved and should be enjoyed to the fullest. Having your life insurance arranged the right way, for your specific situation, will help you enjoy your retirement worry-free.

What should you do with your life insurance policy when you decide to retire?

Many couples are counseled to cancel their life insurance policies as they enter into retirement. The school of thought in this scenario is that if retirement is well planned for, there would be no immediate loss of income for the surviving partner, should the policyholder pass away. While this is technically a true statement, it may be unrealistic for what many families experience. For many retirees, life insurance can make a big difference financially and emotionally if the life insurance policyholder passes away. There are many expenses that arise, such as funeral costs, that could be covered more easily by a life insurance policy. Even if you have a large estate and feel that your family would be financially covered when it comes to living expenses, what happens when that estate is left to surviving members of your family? Will they be able to afford the estate taxes and upkeep?  Life insurance helps protect your family against unforeseen costs, and provides financial assistance that can be used to cover the ongoing expenses associated with the inheritance of an estate. These are just two of the many reasons why keeping your life insurance throughout retirement is a wise decision.

What type of life insurance is best for someone who is about to enter retirement?

First, you should know that there are two primary types of life insurance policies - term life insurance and permanent life insurance. Additionally, variations of each type of life insurance policy are often available. Permanent life insurance policies are built to run from the time of purchase until the event of death, regardless of age. Term life insurance policies are cheaper, but only cover a specific time period - for example, from the time of purchase until the event of death, or 30 years after purchase. That means that many term life insurance policies often expire by the time that retirement hits, although that doesn’t necessarily have to be the case. There are pros and cons to both types of life insurance, and your family’s unique situation should determine the type of life insurance coverage that you need.

Permanent life insurance policies often have an investment portion, so your policy has the potential to accrue some cash value through the savings or investment component, and with some permanent life insurance policyholders are able borrow against the policy, in the event that a large expense occurs. However, these types of life insurance policies often have more expensive monthly premiums, which can be a deterrent for some people. Term life insurance policies have no additional investment component, and many people who purchase term life insurance do not plan to continue using their particular plan by the time they reach retirement age.

Although having life insurance during retirement is a personal choice, and many factors go into the consideration of maintaining a life insurance policy through retirement, the truth is that you can’t afford not to be covered. That may be a cliche, but it’s true nonetheless. Especially during the retirement phase of life, many people come to realize that family is the most important part of life, and ensuring their financial stability in the event of death is of the utmost importance. Life insurance can’t provide happiness, and in no way is life insurance meant to replace you as a person. However, life insurance can provide peace of mind for you and your significant other as you enter retirement.

There are many steps that must be taken when it comes to retirement planning. However, it’s the act of planning that is key. When you near retirement, you take an analytical view of your financial investments such as 401(k) and other funds, your assets such as your home, your daily expenses, and more. Also, you should be considering non-financial factors as well, such as your health, your lifestyle, and your plans for the future. All of these things and more should factor into your retirement planning, but you should also speak with a professional life insurance representative. With the help of a PivotCare team life insurance professional, you’ll be able to determine the type of life insurance policy that’s best for you, and the variations of the policy that fit your specific situation. And, if you already have a life insurance policy that covers you through retirement, a review of your life insurance policy during this stage of your life is imperative to ensure that you aren’t paying too much toward a policy you don’t need - but that your family’s future is financially secure after your passing. Retirement for many is often referred to as the greatest years of one’s life. Having adequate life insurance can help you truly enjoy your retirement years to the fullest.

Should A Promotion Mean a Change in Life Insurance Policy

Life insurance isn’t always top of mind for many of us, and why should it be? Life insurance is typically one of those things that you don’t want to think about on a daily basis, but it’s important nonetheless. Even though life insurance isn’t something that most people think about every day, it is something that should be considered during life’s pivotal moments.

What are life’s pivotal moments, exactly?

These moments  are the occurrences that change your lifestyle and the makeup of your day-to-day life. For example - buying your first home, getting married, earning a promotion, and having a baby - those are all pivotal moments in life that change your future. And, those are the moments that life insurance is made for.
 

When you receive a promotion at work, there’s cause to celebrate your accomplishments. But, after the celebrations end, it’s time to think about your life insurance options. After all, you have undoubtedly worked extremely hard to get where you are in your career. Your work ethic and dedication is likely what led you to the promotion you earned. So it only makes sense that you safeguard your earnings with your life insurance policy.

Any time your income changes, it is imperative that your life insurance policy changes as well. And, if your income is the primary household income, it’s even more important to make sure you secure your family’s future with life insurance. After all, being a provider for your family means safeguarding them even if you pass away. It may be hard to think about a time when you can’t be there for your family, but it would be worse if your family didn’t have financial coverage in the event of your passing. Making sure you have the right life insurance policy now could save lots of heartache in the future.

There are several types of life insurance policies available, so it’s best to consult with a life insurance professional to determine the right type of life insurance policy for you and your unique situation. Permanent life insurance policies cover from the time the policy is purchased until the end of the policyholder’s life, regardless of age. Term life insurance policies are sometimes less expensive than permanent life insurance, but term plans only cover a specific time period, such as 30-years from the time of purchase. You should also consider how much life insurance is right for you and your family. Although each family’s needs are unique, there is an industry standard.  At minimum, you should have enough life insurance to replace a minimum of five to seven years of your salary, plus your other living expenses such as your mortgage.

If you just received a promotion at work, or if any other pivotal life moment if coming your way, it’s time to consult with a PivotCare team professional. You’ll be set up for success with the right life insurance policy for your lifestyle and budget - but you must start the conversation today.