September Newsletter

September 21, 2015

Tomorrow is Never Promised

You work hard for what you have and don't you want to make sure your family will be ok if something happened to you? We insure our homes, our cars, even our big screen televisions, but what about the people in your life? Will they be taken care of if the unfortunate happens?

Take Care of Your Legacy

Imagine how your family would cope if you suddenly were not there to provide for them. How soon would they feel the financial impact of your absence? 6 months or less? 1 month?

Who will be responsible for the funeral costs and final medical bills? Will your family have ample funds for future or ongoing expenses and bills? Will your family have to relocate? Will there be enough money for your children's college education?

No one likes to think about death, but if your loved ones will suffer financially when you pass on, it's better to have a plan now. Do not wait until it's too late.

What is Life Insurance?

Life insurance in a nutshell is insurance that protects an individual's dependents in case of his or her death by paying out a lump sum of money either on the death of the insured or after a set period. The beneficiary is thereby safeguarded from the financial hit of the insured's death.

What can Life Insurance do for you?

While so many struggle with how they will acquire lasting financial security, too many people only have part of the picture on how life insurance can be used to deliver financial security. Life insurance isn't a single use product; it has a wonderfully diverse range of uses.

Not only can it cover funeral expenses and supply income for your family, it can also help with mortgage and debt payments, create an estate or pay estate taxes, and provide cash flow in retirement. Life insurance can also be used to equalize an inheritance, pay for college, take out a loan or borrow against it, and can fund charitable contributions.

Is it Expensive?

The younger you are, the less your monthly payment. For example: a healthy 30 year old can get $250,000 of coverage for approximately $13 a month. How does this compare against your other bills? Here are some monthly expense averages:

$13 life insurance1

$61 cell phone bill2

$64 cable TV3

$80 coffee on the way to work4

$140 take out lunch5

Whatever your priorities are, the cost of life insurance should not be an excuse for skipping out on having coverage. If you shave a few dollars from any of the above expenses, your ability to afford insurance will be very easy.

Talk to your Financial Professional even if You Are Young

The purpose of life insurance is to supply a degree of financial security for your dependents after you are gone. Before you purchase a life insurance policy, consider your financial situation and the standard of living you wish to maintain for your beneficiaries.

Don't wait until you are married or have children. Doing so means you leave your lifestyle and paycheck unguarded for that entire length of time be it 5 years or 10 years. Your first job should be the trigger for getting insurance, not that special someone. Even if you are single, there may be people, like your parents, children, or roommates, relying on your paycheck.

I Already Have Life Insurance. I'm fine, right?

It is important to re-evaluate your life insurance policies annually or whenever a major life event happens such as marriage, divorce, having a baby, or a major purchase such as a house or business.

Life can get busy and you probably don't give your life insurance much thought. How do you know it still meets your needs? It may be time for you to review your policy to make sure you are leaving an adequate life benefit to your dependents, you are paying the right amount to enough coverage, and you are not risking a policy lapse due to changing market conditions and/or under-performance.

Why You Need to Review Your Policy

Reviews don't take much time and can make a huge difference for you and your family. Your financial professional will need a few questions answered to make an accurate assessment of your current coverage and needs. He or she may also need information on your beneficiaries, your family, your finances and financial obligations, and your medical history.

Once your financial professional has gathered and analyzed your information, he or she will meet with your again to go over the findings. This is when you'll find out how your existing policy has been performing, how it is anticipated to perform going forward under the current market conditions, and if there is a better solution available to meet your ever changing needs.

Now is the time to explore how Life Insurance can help you leave a legacy of love for your family. Call Lillian today to find the right Life Insurance policy for you (707) 935-1124.


1 Life insurance quote from Met Life, quoted in September 2015, Term Length of 10 years for a non-smoker in excellent health

2 New Street Research, The Wall Street Journal, March 9, 2014 "Wireless Bills Go Up, and Stay Up"

3 Report on Cable Industry Prices, FCC, May 16, 2014 "Report On Cable Industry Prices"

4, 5 Accounting Principals' Workonomix Survey, by Braun Research, 2013 "Accounting Principals Workonomix Survey 2013"