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Time to Consider Long-Term Care

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According to Census Bureau, 73 million baby boomers will be 65 and older by 2030. Therefore, the demand for long-term care services is expected to grow rapidly in the coming years. It’s advisable to plan for long-term care needs.

Without a plan, the cost of long-term care can be very expensive and quickly add up. Depending on the state and facility, out-of-pocket costs could be upwards of $200 per day for skilled nursing care. Another alarming stat is that there is a 70% chance that someone turning 65 will need some long-term care services.

It’s important to understand what long-term care provides as well as who may need long-term care.

What Will Long-Term Care Do?

Most people don’t think about long-term care until they or a loved one needs it. Long-term care is a type of care that includes:

  • Personal and medical care services for people with chronic illnesses or disabilities.
  • Designed to meet a person’s health or personal care needs during a short or long period of time
  • Available at your home, in the community, or in institutional settings such as nursing homes or assisted living facilities.
  • Services that help people live as independently and safely as possible when they can no longer perform everyday activities on their own.

Who Needs Long-Term Care?

A safe assumption by many is that long-term care is something to worry about later in life. As people age, their physical and mental capabilities decline. Many different people may require long-term care such as those who:

  • Have an ongoing or degenerative health condition
  • Suffer a disability from a medical emergency (i.e., heart attack, stroke, accident, etc.)
  • Require permanent care during later stages of dementia

Long-Term Care Insurance (LTCI) Policy

As the name suggests, LTCI is insurance that helps cover the cost of long-term care services. Enrolling in an LTCI policy when you are younger and healthy is important to keep premiums down. Doing so can also keep your benefits as high as possible.

Most LTCI policies have a waiting period before benefits kick in. This is usually around 90 days. After the waiting period, the policy will cover a certain amount per day for a set number of years. Some LTCI policies also have an inflation rider. This helps to keep up with the rising cost of long-term care services. The younger you are and if you’re relatively healthy when you buy an LTCI policy, the less you will pay in premiums.

long term care planning facts

“It Won’t Happen to Me”

You can live in the hope that you are in the 30% chance of not needing long-term care services. But this is not a good enough reason to forego a long-term care plan. Without a plan, you will have to pay for long-term care services out of pocket. These costs can quickly add up and be very expensive.

For example, the average cost of a private room in a nursing home is around $100,000 per year. The cumulative expenses can quickly change your savings and leave you financially struggling in retirement. Additionally, Medicare does not cover most long-term care services.

Planning for long-term care needs is important to ensure that you are prepared for the future. Check out this Cost of Care Survey for more information about the importance of Long-Term Care and their costs. As always, I’m always available to answer of your questions.

Do Millennials Need Life Insurance?

Do Millennials Need Life Insurance?

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The financial challenges millennials face can be overwhelming. Many young adults have to figure out how to pay off college loans, save to buy a home or start a family, and sock away money for retirement. Given these hurdles, it’s no wonder that life insurance as a financial asset gets little to no attention. But it should. There are many reasons to have life insurance at a relatively young age, but here are some common ones.

Leaving your debts for others to pay

As a young adult, you become more independent and self-sufficient. While you no longer depend on others for your financial well-being, your death might still create a financial hardship for those you leave behind. You may have debts such as a mortgage or student loans that are jointly held with another person. Or you may be paying your parents for loans they took out (e.g., PLUS loans) to help pay for your education. Your untimely death would leave others responsible for some or all of these debts. You might consider purchasing enough life insurance to cover your financial obligations so others don’t have to.

Funeral expenses can also be a burden for those you leave behind. Life insurance could ease the financial burden of paying for your uninsured medical bills (if any) and for costs associated with your funeral and burial.

It’s less expensive

Premiums for life insurance are based on many factors, including age and health. Certainly, the younger and presumably healthier you are, the less your coverage will cost. This is especially true if you are at a high risk for developing a medical condition later in life. However, 44 percent of Millennials overestimate the cost at five times the actual amount, according to a 2018 report by LIMRA.

Replacing lost income

Someone may be relying on your income for financial support. For instance, you may be providing for a family member such as a parent, grandparent, or sibling. In each of these instances, how would your income be replaced if you died? The death benefit from life insurance can help replace your income after you’re gone.

Providing for your family

As your family grows, so do your financial responsibilities. There is likely a hefty mortgage to pay. And there are costs associated with young children. If you died without life insurance, how would the mortgage get paid? Could your surviving spouse or partner cover the costs of day care and housekeeping?

And there are events you should plan for now that won’t happen until several years in the future. Maybe you’ll begin saving for your kids’ college education while trying to save as much as you can for your retirement. Over the next several decades, think about how much you could set aside for these expenses. If you are no longer around to make these contributions, life insurance can help fund these future expenditures.

Work coverage may not be enough

You may have a job with an employer that sponsors group life insurance. Hopefully, you take advantage of that program, but is it enough coverage to meet your needs now and in the future? Your insurance needs may change with time, although your employer’s coverage may not. Also, most employer-sponsored life insurance programs are effective only while you remain an employee. If you change jobs or are unable to work due to illness or disability, you may lose your employer’s coverage. That’s why it’s a good idea to consider buying your own life insurance.

why people don't have life insurance

4 Reasons Why People Don’t Have Life Insurance

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why people don't have life insurance

There’s nothing exciting about life insurance. But it’s not meant to get you hyped up. It’s meant to take care of you and your loved ones. Life insurance is designed to protect your income in the unfortunate event of your passing, whether too early or at a ripe old age. But who wants to think about that? We all love the idea of YOLO (You Only Live Once), but no one likes to think about that “only living once” is referencing the end.

This may produce the type of consumer who shies away from thinking that life insurance is a necessary option. Even worse, a consumer who purposely doesn’t think about it and develops inaccurate opinions about life insurance. Here are 4 reasons why people don’t have life insurance and why they’re not entirely understanding the truth behind a much-needed piece in their financial portfolio.

The Cost is Too High

The first mistake many people make is over-estimating the cost of life insurance for a variety of reasons — age, gender, pre-existing conditions, etc. — and that stems from not knowing the facts. 44% of Millennials estimate the annual cost for a 20-year term life insurance policy at $1000 a year. But, in reality, they could purchase one for around $165 a year.

There are Other Financial Priorities

Life insurance is about the unexpected. It’s natural for more tangible concerns to take precedence. Student loan debt, retirement planning, credit card debt, mortgage payments are all examples of more pressing money concerns. No one thinks about the unexpected, hence the definition of the term. As human beings we sometimes have tunnel vision to only perceive that which is in front of us.

Life Insurance is a different form of protection. It covers that which we cannot perceive. But it’s also not only about you, but what comes after you. Your loved ones. Those who you certainly do not want saddled with the debt you may leave behind. Purchasing life insurance is an important financial priority that you should not, and cannot, ignore.

Unsure of the Need

You’re never too young for life insurance. Much like planning for retirement, the earlier you start, the more financially protected you will be. Plus, your younger age will have you qualifying for lower premiums. If you develop health issues as you get older, there’s no longer a concern about getting life insurance at a higher price. You’re already covered.

You’re also never too old for life insurance. Policies may come with a higher premium, but you will be able to cover the costs of any debt you have incurred once you pass. Plus, any final expenses such as burial fees and estate closings will no longer be the responsibility of your loved ones.

Believe You Don’t Qualify

While the policies may be more expensive for those with pre-existing conditions, they still exist for the specific purpose to cover those with health issues such as diabetes. If you’re concerned about risk factors disqualifying you for life insurance, don’t consider that door closed to you. Talk with a financial professional about your options. Tailored life insurance plans are available.

insurance coverage

Closing Gaps in Your Insurance Coverage

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insurance coverage

Buying insurance is about sharing or shifting risk, but you may think you’re covered for specific losses when, in fact, you’re not. Here are some common coverage gaps to consider when reviewing your own insurance coverage.Life Insurance

In general, you want to have enough life insurance coverage (when coupled with savings and income) to allow your family to continue living the lifestyle to which they’re accustomed. But changing circumstances may leave a gap in your life insurance coverage.

For example, if you have life insurance through your employer, a job change could affect your coverage. Your new employer may not offer the same amount of insurance, or the policy provisions may differ. Review your income, savings, and expenses annually to help ensure that the amount of life insurance you have matches your needs.

Homeowners Insurance

It may not be clear from reading your homeowners policy which perils are covered and how much damage will be paid for. It’s important to know what your homeowners policy covers and, more important, what it doesn’t cover.
You might think your insurer would pay the full cost to replace your home if it were destroyed by a covered occurrence. But many policies place a cap on replacement cost up to the face amount stated on the policy. You may want to check with a building contractor to get an idea of the replacement cost for your home, then compare it to your policy to be sure you have enough coverage.

Even if your policy states that “all perils” are covered, most policies carve out many exceptions or exclusions to this general provision. For example, damage caused by floods, earthquakes, and hurricanes may be covered only by special addendums to your policy, or in some cases by separate insurance policies altogether. Also, your insurer may not cover the extra cost of rebuilding attributable to more stringent building codes, or your policy may limit how much and how long it will pay for temporary housing while repairs are made.

To help avoid these gaps in coverage, review your policy annually with your insurer. Also pay attention to notices you may receive. What may look like boilerplate language could actually be significant changes to your coverage. Don’t rely on your interpretations — ask for an explanation from your insurer or agent.

Auto Insurance

Which drivers and what vehicles are covered by your auto insurance? Most policies provide coverage for you and family members residing with you, but it’s not always clear-cut. For instance, a child who is living in a college dorm is probably covered, but a child who lives in an off-campus apartment might be excluded from coverage. If you and your spouse divorce, which policy insures your children, particularly if they are living with each parent at different times of the year? Notify your insurer about any change in living arrangements to avoid a gap in coverage.

Other gaps include no coverage for damaged batteries, tires, and shocks. And you might not be covered for stolen or damaged mobile phones or other electronic devices. Your policy may also limit the amount paid for a rental while your vehicle is being repaired.


In fact, insurance coverage for rental cars may also pose a problem. For instance, your own collision coverage may apply to the rental car you’re driving, but it may not pay for all the damage alleged by a rental company, such as loss of use charges. If you’re leasing a car long term, your policy may cover the replacement cost only if the car is a total loss or is stolen. But that amount may not be enough to pay for the outstanding balance of your lease. Gap insurance can cover any difference between what your insurer pays and the balance of your lease.


Policy terms and conditions aren’t always easily understood, and you may not be sure what’s covered until it’s time to file a claim. So review your insurance policy to help ensure you’ve filled all the gaps in your coverage.

need life insurance

9 Reasons You Need Life Insurance

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need life insurance

As a young person, life insurance may not be a pressing concern. With so much life ahead, saving and investing may not take precedence for you right now. However, it’s important to recognize that present choices profoundly impact your future financial security. Explore the significant advantages that life insurance can provide for the present and the years to come.

Understand the Misconceptions

Many misconceptions deter young people from realizing the value of life insurance. Life insurance offers numerous advantages for young people, including lower premiums and potential long-term savings. It secures your future, supports loved ones, and shields you against unexpected financial burdens.

Secure Financial Protection Early On

Starting a life insurance policy in your 20s brings undeniable benefits. Young age and better health translate to lower premiums, enabling you to lock in long-term affordable rates. Acting early saves significantly compared to waiting until later when premiums rise due to increased risk.

Safeguard Your Loved Ones

Life insurance offers crucial financial protection for your loved ones in the face of an untimely death. Imagine the burden on your parents, siblings, or other family members left to handle outstanding debts. Funeral expenses are overwhelming and emotionally distressing. Additionally, the loss of your income could destabilize their financial security.

Plan for Future Responsibilities

Consider future responsibilities such as marriage, parenthood, or co-ownership of assets in your 20s. Life insurance can secure your financial stability during significant life milestones. It provides a safety net for your spouse and children, ensuring their protection in case of the unexpected. Moreover, it safeguards shared assets, guaranteeing financial security for your loved ones and preserving the legacy you have worked hard to build.

Student Loan and Debt Management

The burden of student loan debt weighs heavily on many young adults. In the unfortunate event of the insured’s passing, cosigners or family members become responsible for the remaining loan balance. Life insurance can alleviate this strain through the death benefit, which pays off the outstanding student loans, sparing loved ones from inheriting the debt.

Furthermore, life insurance is a valuable tool for debt management and protection. You can use it strategically to create a safety net for various financial obligations, including credit card debt, mortgage loans, or personal loans. In the case of shared debts or joint ventures, the death benefit can settle outstanding balances, preventing financial hardships for the surviving parties.

Lock in Affordable Rates and Coverage

“Insurability” refers to an individual’s eligibility for life insurance based on age and health. Obtaining coverage becomes more challenging and expensive as you age or develop health conditions. Take advantage of your youth and seize the opportunity to secure life insurance now. Your impeccable health affords you affordable rates and comprehensive coverage for the future.

Build Cash Value and Future Flexibility

Cash value is a savings component included in some permanent life insurance policies. It works as an insurance and investment tool. As you pay your premiums, a portion contributes to the death benefit, and the remainder builds the cash value. The savings grow tax-deferred and are accessible during your lifetime. You can use the funds for a home purchase, cover education expenses, or supplement retirement income.

Living Benefits and Riders

Life insurance riders like critical illness or long-term care provide added security beyond traditional coverage. For instance, critical illness riders offer a lump sum payout upon a severe medical condition diagnosis, helping cover treatment expenses. Long-term care riders provide financial assistance for extended care needs, ensuring comprehensive protection for any health challenges that may arise.

Peace of Mind and Emotional Well-Being

Life insurance’s true worth lies in the intangible benefits it brings. It grants peace of mind and lessens anxiety about the unknown future. The emotional well-being it provides is immeasurable. It assures you that your loved ones will be financially secure even in your absence.

your financial plan

Choosing the Right Disability Insurance Plan: A Comprehensive Guide

your financial plan

Have you ever wondered how you would manage if you suddenly fell ill or were in a debilitating accident? What would you do if you’re unable to earn a living or financially take care of yourself and your loved ones?

According to data published as of 2021, 13% of adults have at least one disability. Only 31.1% of people with disabilities are in active employment compared to 74.8% of people without disabilities, increasing their exposure to financial hardships.

Disability insurance (DI) provides a safety net, enabling you to meet your financial obligations as you recuperate or forebear with disability. It’s an insurance policy that supplements between 50% and 80% of your income when you cannot work or earn because of disability.

What to Consider When Choosing a DI Plan

Benefit Amount

The insurance benefit from a DI plan is 60% to 70% of income earned 5 to 18 months before your first claim. Most DI insurers cover up to 60% of the insured income. It’s crucial to consider your ongoing expenses and desired lifestyle after a disability when choosing a benefit amount. Consider your debts, dependents, benefit duration, renewability provision, elimination period, and future increase to ensure your finances meet all your developing financial obligations after disability.

Elimination Period

The period between insurance issuance and benefit claim after illness or injury is the elimination period. Insurers use this period to ascertain if you meet the benefit criteria. You’re liable for your medical expenses and lost income during this duration.

It typically occurs between 30, 60, 90, or 365 days. The shorter the duration, the higher the premium cost. A short duration means the insurer starts paying benefits sooner, translating to increased risks for them as claims get shelled faster. Consider your financial situation and risk tolerance. A long elimination period is beneficial if you have an emergency fund or are comfortable taking on risks.

Occupation Type

Disability coverage language varies between insurers. Some insurance companies provide an “own occupation” plan, which defines total disability as a condition preventing the insured from performing their duties in their regular job, even though they can seek another type of employment. On the other hand, some insurers provide “any occupation” coverage, which defines total disability as inability to work.

Own-occupation DI is generally more expensive but offers better protection, especially for specialized professions. For instance, a surgeon can become disabled if they develop tremors, making it impossible to perform operations. The own-occupation policy provision does not disqualify them when they can still work in diagnostic medicine. However, the any-occupation coverage disqualifies them if they can still earn a living by performing any task in their occupation.

Your occupation determines the type of plan you get. Construction workers may need an own-occupation coverage because of the risks involved in their line of work. Any-occupation insurance policy is perfect for employees in specialized fields involving education, training, and experience. 

Future Earning Potential

You may also want to consider a DI with a future purchase option rider, especially if you’re young with a rising earning potential or in a fast-growing field. Increasing your benefits adds a layer of protection to your finances, securing your future according to your rising income.

Additional Considerations

Other factors to consider when choosing a DI include cost-of-living adjustments. Inflation can reduce the value of your benefits. Therefore, choosing a policy with provisions for future adjustments is essential. You can also consider residual benefits riders to supplement a portion of your income in case of partial disability significantly reducing your income.

Shopping for Disability Insurance

Due diligence is essential when looking for DI. Aside from personal considerations, get quotes from multiple insurers to compare plans and pricing. Work with a financial advisor or insurance broker to understand the fine print for every potential DI and personalized guidance resonating with your present and future financial obligations and objectives.

Get The Appropriate DI Plan Today

Choosing the right DI plan requires research and financial insights. Understand your current and future financial obligations, DI prerequisites, and how your profession affects your benefits to choose a policy suitable for your conditions. It’s also crucial to compare plans to get cost-effective coverage. DI is an effective financial safety net in case of disability. Talk with a financial professional at Barnum Financial Group for tailored guidance today.

your financial plan

Disability Insurance in Your Financial Plan

choosing the right disability insurance

Save your money. Stick to a budget. Invest in a 401K. Plan for your children’s education. Prepare for retirement. As we all work in our various career fields, these are the phrases we hear consistently. Building a financial plan is essential in preparing for your future and the future of your loved ones, but where does Disability Insurance (DI) fit into those plans? With the month of May being Disability Insurance Awareness Month, it’s the perfect time to evaluate your financial plan and see if disability insurance is right for you.

For most people, disability insurance is a box they check when they’re hired by an employer as they opt for the basic group plan. But serious consideration should be given to obtaining your own individual disability insurance plan. You get what you pay for, but it’s very important to know what your plan covers at work, features included, and to know if you are also being covered if you are heavily compensated in bonus/commission. With life insurance, the choice is a simple one. When we pass away, we all want to make sure our loved ones are taken care of and that’s why life insurance makes sense. But DI protects us from financial losses throughout our life, whether its an accident or an illness, 43% of all people aged 40 will have a long-term disability by the age of 65.[1]

There are two different types of Disability Insurance Coverage:

  • STD (Short-Term Disability) Policy
    • Waiting period of 0-30
    • Maximum benefit period of no longer than 2 years
  • LTD (Long-Term Disability) Policy
    • Waiting period of several months
    • Maximum benefit period of a few years to retirement age (65, 67, 70)
    • 90 days is the typical waiting period for a long-term disability that can stack onto a short-term policy 

There are many reasons to include disability insurance in your financial plan, but none are more important than this: It’s all about protecting your income. 88% of disability insurance claims are because of illness.[2]  Obviously, we cannot predict our health as we grow older. We also cannot predict or plan to have a car accident, but we don’t think twice about obtaining car insurance. If you became too sick or hurt to work, why are we not insuring your most valuable asset? Your income.

A plastic surgeon who develops Dupuytren’s Disease, which causes the fingers to be pulled towards the palm, is unable to operate. A teacher with anxiety develops consistent migraines that impede their ability to instruct their students. A bus driver is diagnosed with cancer, which keeps them out of their job for several months. With disability insurance coverage, these people could protect their lost income from being unable to perform their jobs.

Another facet of disability insurance is the difference between Any-Occupation (Any-Occ) and Own Occupation (Own-Occ) policies. With Any-Occ, a person only qualifies for disability insurance payments if their disability prevents them from performing any occupation. Own-Occ deals with disabilities that prevent a person from performing their specific job. Like the surgeon, with a disabled hand, who cannot perform operations. They would be able to take a teaching position at a university. Disability insurance will pay the surgeon for being unable to perform their own job, while still mainlining employment in another field of study. There are also features to mitigate the risk of a drop in income if you were to become partially disabled and had a loss of time and duties which would result in a loss of income.

As mentioned above, your employer probably offers you group disability insurance coverage and while that’s a form of protection, it’s not your best form. Obtaining your own, individual disability coverage, subsidizes the gap in coverage that any group plan with offer. It also provides you with other incentives. An individual plan stays with you throughout your life. It will follow you if you happen to obtain employment at another company. Disability insurance benefits are also tax-free since you purchased your individual plan with after-tax dollars as opposed to group plans, which are taxable, since your payments are taken out of your gross wages by your employer.

If you’re thinking about disability insurance or this article has brought up more questions on the subject for you, the financial planners at Barnum Financial Group can easily walk you through those answers and guide you in the right direction if looking to purchase an individual disability insurance coverage plan.

Remember. Disability Insurance is about protecting your income.

[1] https://www.iii.org/main-responsive/disability-income

[2] https://disabilitycanhappen.org/disability-statistic/

life insurance questions

10 Life Insurance Questions You Should Ask Yourself

life insurance questions

Life insurance – we’ve heard of it, we know how important it can be, we think we probably need it, but do we know how it works? What are we paying for when we make monthly policy payments? If you’re single with no children, do you still need life insurance?

Bottom line is, acquiring life insurance is one of the most positive financial moves you can make. It’s an even better decision to get it when you’re young and healthy, resulting in a more affordable rate on your policy. To clarify any confusion on what type of policy to choose or how much coverage to get, we’ve answered a healthy mix of commonly asked questions below.

Which different kinds of life insurance are there, and which one would work best for me?

There are essentially two forms of life insurance: term and permanent (also widely known as “whole life”).

A permanent life insurance policy lasts your entire life, while a term life insurance policy lasts for a specific amount of time — i.e. your policy’s term length. Usually, this can be 10, 15, 20, or 30 years. Typically, term life is a simple, affordable type of life insurance that’s easy to purchase and manage.

The core differences between term and permanent are cost, complexity, and cash value. Permanent life insurance has a cash value component that can allow it to grow over time and be borrowed from while you’re alive. Permanent insurance cash value capability and its lifetime coverage can make it more expensive and more complex to manage.

When it comes to term life insurance, you apply to have coverage in place until a certain point in your life when you would no longer need the coverage. This can include, but is certainly not limited to, your children becoming adults, or paying off your mortgage. Term life insurance’s primary goal is to protect your loved ones in the event of your (or your spouse’s) untimely passing, compared to a permanent life policy which may also be used as a vehicle for cash accumulation and/or estate planning purposes. For many, term life insurance is a sound, cost-efficient choice that protects your loved ones during the years they need it most.

If I’m single or don’t have kids (or both), do I still need life insurance?

If you have any sort of financial obligation — whether it be student loans, co-signed debt, a mortgage, etc. — life insurance is always good to have. That way in the event of an untimely death, someone else will be able to pay these off for you. Especially if you have a partner, whether or not you’re married or have children, you share financial responsibilities. It’s important to have the conversation of who will take on your financial duties should something unexpected happen. Your term life insurance is a way to protect your loved ones, and you control designating beneficiaries.

If I’m married, does my spouse need life insurance too?

Typically, both spouses have a life insurance policy with their partner listed as the beneficiary. You want to avoid your partner grieving and worrying about handling finances all at once.

A common misnomer is stay-at-home parents don’t require coverage since they don’t earn any income. This couldn’t be further from the truth, as a stay-at-home parent has a major impact on a household that is irreplaceable. If he or she were to pass away, extra space would be needed in the surviving partners budget for childcare, household needs, and more.

How much life insurance do I need?

The short answer for “how much” life insurance coverage you need is 5-10 times your income. However, the “optimal” amount depends on your specific circumstances. What’s important is to ensure the policy amount is adequate to cover any major expenses your loved ones would take responsibility for in the wake of your death.

How long should my life insurance policy be for?

The length of your policy depends on how long your loved ones need a financial safety net. For example, if you recently purchased a home and have a 30-year mortgage, you’d want the policy to last until the mortgage is paid off. You’d also need to consider the coverage length for your beneficiaries — how long until your kids are financially independent? How long until your student loans are paid off? These are some things to consider when choosing a term length policy.

What kinds of expenses would life insurance cover should my loved ones ever receive a payout?

A term life insurance payout can be used for anything your loved ones desire. The range includes, but certainly not limited to, funeral/any end of life costs, mortgage payments, childcare or caregiving for your dependents, healthcare costs for your dependents, children’s education costs, or just everyday living expenses.

When you purchase life insurance, try to use it as an opportunity to talk to your beneficiary about the coverage amount and your vision for the proceeds being used. Ensuring your loved ones’ financial stability no matter what happens to you speaks volumes.

How do I start the conversation of life insurance with a spouse or family member?

Death isn’t exactly the most pleasant topic to discuss with anybody – let alone people you’re close with.

However, life milestones are the most ideal starting point to help spark the life insurance conversation. Whether it’s getting married, a new baby on the way, or purchasing a home – all these life events are ideal segues. This approach takes the attention off of death, putting more focus on protecting your loved ones should the unexpected occur, turning it into a positive talk on financial planning.

These conversations also empower your relationship to cultivate positive financial behavior. These discussions open the door for financial planning in all areas of your financial life, not just the morbid ones. Think of life insurance as the contingency plan which compliments the most exciting areas of life and your plan for tomorrow.

What do insurance companies consider when determining your rate?

Life insurance companies consider your age, gender, overall health, coverage amount, and a few other items when determining your premium pricing. Generally, the younger and healthier you are, the more affordable pricing will be.

Am I allowed to modify my life insurance policy?

After purchasing an insurance policy, it’s always a best practice to check in on your coverage needs periodically — especially if you experience a major life change that impacts your financial situation. If you determine you require a longer-term length or a higher coverage amount, you’ll usually need to go through the application process again. Therefore, it’s usually a good idea to keep that policy from when you were younger and healthier and purchase an additional, supplemental policy that fills your coverage gap.

On the other hand, if you discover you require less coverage, you can always reach out to your life insurance provider or financial advisor and request to lower your coverage amount (which will also lower your monthly premiums.)

What’s the best type of life insurance?

Whether it’s a term or permanent [whole] life policy you choose to purchase, the best type of life insurance is the one that’s in force after the insured passes away. It’s the careful attention and detail a financial advisor provides that can help you determine what approach to life insurance would work best for your specific needs.

Have a question? Contact us here and let us know!

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