Life insurance is important to your financial security. As a vital part of your financial plan, it needs to be reviewed regularly. As you experience changes in your life and career, your goals and protection needs change.
Why do I need life insurance?
Life insurance is an essential part of any financial program. Most people buy life insurance to replace income that would be lost at the death of a wage earner. The cash provided by life insurance also can help ensure your dependants are not burdened with significant debt when you die. Life insurance proceeds could mean your dependants won't have to sell assets to pay outstanding bills or taxes. An important feature of life insurance is that no income tax is payable on proceeds paid to beneficiaries. You need life insurance if you want to provide financial protection for your dependants (or to your creditors) in the event of your death. A business may want to use life insurance to fund its employee benefit plans, protect against the premature death of a key person or to provide for business continuation. The following are typical examples of family and business purposes to consider when assessing the need for life insurance:
family
- Dependant children.
- Dependant spouse, parent or grandparent.
- Credit enhancement.
- Key person indemnification.
- Business continuation.
- Employee benefit plans.
Should one or more of these examples apply to you,
the purchase of life insurance may be suitable for your needs.
How much life insurance do I need?
The amount of life insurance a person needs will depend on their own particular circumstances and the reasons for purchasing the policy. One approach to determine how much life insurance you should purchase is to analyse the various needs of your family in the event of the death of a family member. Life insurance may satisfy a number of these needs by providing a fund that can be used to:
- Pay off an individual’s last debts such as medical bills and funeral expenses;
- Meet estate taxes and other expenses in settling an estate;
- Provide life income for the spouse;
- Pay off a mortgage;
- Pay for the children’s education;
- Provide funds for retirement;
- Provide an income for the policyholder’s spouse to give the family time to readjust to a new standard of living;
- Draw interest to provide funds for some special purpose; or
- Provide a monthly income until the children are grown and out of school.
Thus, the current and future financial needs particular to your family can be a significant consideration in determining the amount of life insurance that is right for you. Another factor that may be taken into consideration in determining how much life insurance you need is the amount of your annual salary.
How do I choose a beneficiary?
Designating a beneficiary is an important right of life insurance ownership. It lets you determine who receives your policy benefits. After determining whom you want to select as your beneficiary, you may then choose what percentage of the benefit each individual should receive.
What do I do if I have a claim?
Ken Holmes is committed to providing superior service to you and your family when you have a claim. Our goal is to process all claims promptly, fairly and courteously. Most claims are processed in 5-10 business days of receipt of the necessary claim information.
Where do I start?
Call me, Ken Holmes 0800 KENHOLMES, for a no commitment conversation about your particular requirements and together we can identify options for you to consider at your leisure. Planning and executing an insurance portfolio should be done carefully and not rushed.
Did you know …
For a minimum of $195, a US Insurance company will insure you against lots of things can go wrong at a wedding. The policy covers everything from rainouts to Uncle John break dancing down the aisle in his birthday suit. It also includes a Cold Feet Exclusion in case your prospective new wife is too busy with your best man to make it to the church on time.
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