Life Insurance

The definition of life insurance is no mystery. But, it may be the most misunderstood insurance product on the market, despite the fact that everyone needs it. People often spend more time debating about the right kind of insurance to buy instead of discussing the right amount.

The real question to ask is this: if you were to die today, how much money would your family need to maintain their standard of living? Or if you're single, how much money would be needed to settle your outstanding debts?

If you're purchasing life insurance to provide for your family, the rule of thumb is you need six times your annual income, but that figure is not always adequate. Your age, the size of your family and many other factors may effect your family's comfort in the event of your untimely death.

If you're purchasing life insurance to settle your affairs, then the amount of insurance you need is dependent upon your assets and liabilities. Since assets and liabilities change over time, periodic reviews and updating of your life insurance coverage is highly recommended.

The important thing to remember, whether you're married or single, is that you should decide how much life insurance you need before determining the type of insurance to buy. And, F.R. Owen & Associates can help you make the right strategic decisions every step of the way.

Term Life

Term life insurance provides protection for a specific period of time. It pays a benefit only if you die during that term. Some term insurance policies can be renewed when you reach the end of a specific period, which can be from one year to twenty years, and the premium rates increase at each renewal date. Many policies require you to furnish evidence of insurability at renewal in order to qualify for the lowest available rate.

F.R. Owen & Associates represents most of the leading term life carriers, but our focus isn't strictly on price. Policy features are also important to consider, such as converting coverage, returning premiums and coverage extensions beyond the initial contract period.

Variable Life

With variable life insurance, you can choose how the funds in the investment portion of the policy are invested in sub-accounts that include stocks, bonds and other equities.  Unlike other types of insurance, you can combine the protection of life insurance with the investment potential of common stocks. This leaves a death benefit that may vary from your original purchase, but most plans offer a guaranteed minimum. Any guarantee is based on the claims-paying ability of the issuing insurance company.

Whole Life

A traditional whole life insurance policy provides both a death benefit and a cash value component. The policy is designed to remain in force for a lifetime. Premiums remain constant and the death benefit is guaranteed. Over time, the cash value of the policy grows and keeps the premium level. Although a whole life premium starts out significantly higher than a term life premium for a comparable policy, over time the level whole life premium is eventually exceeded by the ever-increasing premium of a term life policy.

Universal Life

Universal life insurance is similar to whole life insurance in that a portion of the insurance is invested. But, while whole life puts the burden of investing on the insurance company, universal life allows the insured to participate in the investment decision-making and share some of the risk. This greater flexibility creates potential for a larger life insurance value. 

And, although the insured shares some of the risk, many universal life carriers now offer contract riders that guarantee the coverage regardless of the investment performance. In essence, this allows the insured to focus on the costs of coverage, not cash build up.

Long Term Care

It's a subject most of us don't like to think about. But, odds are, we'll need some form of nursing care in our old age. *With a current average cost of $50,000 per year for a private room, long-term nursing care poses an enormous future cost burden.

The subject of long term care insurance is too important to ignore. Please click here to learn how it can supplement your existing income, help protect your assets and provide a more comfortable retirement. (Please click here)

*http://www.aarp.org/confacts/health/medicaidnurse.html