So You Love your Family, Now What? Get Started on The Road To Affordable Term Life Insurance
When clients ask me what kind of life insurance they need, I tell them that there are really three steps in the process of figuring out what kind of life insurance to buy which will determine what kind of life insurance quotes to get:
You need to figure out exactly, or close to it, how much capital you or your spouse would need to pay off debts and invest to replace lost income of a spouse. In my practice in Palo Alto, CA this rarely equates to a generic 10x earnings or other rule-of-thumb. There are many variables to consider. Do you pay off a low interest rate mortgage, or do you invest enough capital to generate monthly income to continue paying the mortgage. Mortgage interest deductions on a tax return can help families maintain their miscellaneous itemized deductions, since mortgage interest is one of the largest itemized deductions families can use. If you lose that deduction it's possible that you would lose the rest of your deductions to the floor imposed by the IRS and those deductions might be wasted. Remember, you need a largest enough block of capital to replace your earnings if something bad happens to you. You can use the help of a fee only financial planner, or you can use the help of a local life insurance broker with a lot of experience. I'm in Palo Alto, CA and I'm in my 32nd year so I have plenty of experience helping families develop the "right" number for their unique situations.
Once you've figured out how much life insurance you need, you need to figure out HOW LONG you want the policy to remain active. Do you have young kids? Well, perhaps you'd want protection until they graduate from college. That would be, perhaps, 15 years. Do you need insurance to protect a business loan or provide key person insurance or to fund a business continuity plan? Then maybe a 10 year duration makes sense. If you're conservative and want insurance on the books until the day you die, whether it's tomorrow or 50 years hence, then "permanent" insurance would be something to consider.
Ok, so now that you've answered the first two questions, you're ready to decide on what type of life insurance is best for your situation. In my practice, the "sweet spot" seems to be 20 years. This duration of level premium term life insurance policy makes a lot of sense for families with young kids who need to protect them until they complete undergraduate studies or at least stabilize financially outside their primary home.
There are many flavors of life insurance these days. No one policy will solve all your needs, but you have many options to choose from.
Remember, there are no wrong answers here. These are your numbers. Play around with my life insurance needs calculator here. You'll be surprised at how fast these numbers add up. Please DON"T BE AFRAID OF A LARGE NEED FOR LIFE INSURANCE!! That's normal when you see a need of $2 Million or more. But term life insurance is SO cheap that you can cover this gap for as little as $83 per month (depending on age, sex and health status). That's not a ton of money to provide your family with the money it needs when you're gone.
please simply take a look at some quotes to see how cheap it could be for you to make sure your family will be OK if you die early! you'll be glad you did!
If you need an insurance professional who knows the industry, listens to your needs and works hard for you, Chris is your man.
If you need an insurance professional who knows the industry, listens to your needs and works hard for you, Chris is your man.We have trusted Chris with all our insurance needs for several years. He always listens and understands our needs completely and then works hard to design a policy that best fits our needs. He is very personable and easy to work with.
Expert Advice and Honesty
Chris brings expert advice and honesty to every project we work on. He gets things done in a timely manner and does an excellent job following up.
Didn't Try To Upsell Me!
I found Chris when looking for life insurance brokers. I knew exactly what I wanted and told Chris and he was able to deliver without trying to upsell me on something else. It was very straightforward and exactly how I hoped it would be. I would definitely recommend him for anyone in a similar scenario.
CB Acker Associates Is Extremely Responsive
Chris provided (and continues to provide) excellent service and support for our insurance needs. He is very responsive, knowledgeable and provides specific and efficient solutions to our insurance needs. I highly recommend Chris!