Do You Need Life Insurance?

Facing the subject of life insurance is difficult, which is why most people put it off or avoid it entirely.

But the reality is that someone close to you will suffer financially when you pass away. Whether it is a member of your close family – spouse, children, and aging parents – or people closely related to you, like business partners or employees.

Forgoing the opportunity to prevent those closest to you the suffering of dealing with the hardships that come with such difficult situation is not a mistake you can fix once you are gone.

The only chance you have to make sure they are well taken care of is to act while you still can do something about it.
 
How Much Coverage Should You Get?

There is plenty advice floating around regarding how much coverage you should get for life insurance.

Most recommend calculating it based on multiples of your annual income, with a spread that goes from 2 times up to twenty times the amount. So what’s the best way to determine if you need $100,000, $500,000 or something in between?

The best way is to have an insurance professional conduct a Financial Needs Analysis. The process consists of collecting all your financial information to estimate what your family members would need after you are gone to meet their financial obligations.

Once we know your family needs, we tally all the resources your surviving family has at their disposal, such as spouse’s incomes, savings, and other life insurance.

The difference between their needs and the resources they have to meet them is the amount of life insurance you need.

What Kind Of Life Insurance Is Best For You? How Much Coverage Should You Get?
 
What Kind Of Life Insurance Is Best For You? How Much Coverage Should You Get?

There are several considerations that come into play when choosing, and we make sure you are aware of them.

The two primary considerations to have here are the length of the coverage and the budget you have available to cover it.
Knowing how long you need the insurance helps you decide if you need term insurance, which lasts for a specified period; or permanent insurance – which is a lifelong coverage.
Both have their advantages and disadvantages.

Term insurance is perfect for temporary needs – such as making sure there is enough money to pay a mortgage – and more affordable than a permanent policy. On the flip side, once the period is over the cost to maintain it goes up considerably.

Permanent insurance has the benefit of having the premiums projected to remain level over a lifetime; they also accumulate a cash surrender value, which can be available if needed in case of an emergency or opportunities. The counterpart is that the permanent insurance premium is from three up to ten times higher for its equivalent amount of term insurance.

Life Insurance And Small Businesses

How The Benefits Of Life Insurance Go Beyond Taking Care Of You Personal Needs.

Businesses – especially small ones – can use life insurances to protect their companies in the case of premature deaths of active owners.

These life insurances can be acquired to fund a buy-sell agreement, provide a financial cushion to the company, as a equalize the inheritance of the business and to make sure to provide cash income to pay estate taxes and avoid the need for selling the business to pay the liability.

We at KeyHealth understand the drive to want to preserve the legacy you spend your life working for and are prepared to guide you through the process of setting up the life insurance that suits yours and your business best.