Life insurance discussions across the country can vary by advisor, firm, or company. There are two main types of policies written in America today, term insurance or permanent insurance also known as whole life or universal life insurance. Depending on who you speak with, there are certain advantages of one type versus another besides price.

Almost 1 in 3 people have no life insurance at all. These folks go thru life every day with the risk of preceding their loved ones in death leaving very little income or wealth protection to their children or spouse. At Insurance Exchange Navigators we believe every client should have adequate life insurance or at the very least enough for covering the cost of funeral expenses or cremation. The firm believes when most people are informed of the true low cost of protection in a term insurance policy, they will find the means to purchase. Whether some folks are deterred from buying because of previous experiences with whole life insurance or simple unfamiliarity, our consultants believe we can simply inform our clients of their affordable options and allow them to make a favorable autonomous decision for what suits them best.

Throughout the industry, many advisors use a simple formula for determining the approximate amount necessary for protecting against loss of life and income. More often than not, the formula we find most effective is approximately 10‐12 times a person’s annual income. This amount should provide a necessary amount of protection to a spouse or family for covering the most common liabilities such as:

  • Funeral expenses
  • Auto loans
  • Income Replacement
  • Outstanding credit card debts
  • Business debts
  • Childcare Costs
  • Mortgage balance
  • Children’s college education

In other cases whereas the client may be closer to retirement and little or no liabilities exist, our philosophy can sometimes lean toward the conversation of permanent life insurance for coverage later in life or perhaps reasons associated with advanced estate planning. In these situations, cookie cutter formulas do not pertain.

If seeking interest in options and quotes from multiple life insurance companies, please feel free to contact one of our local offices listed on the About Us page of this website. A life insurance Needs Analysis is fee free and without obligation to purchase. We would be happy to provide proper guidance.

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