Why is assessing your life insurance need so important? Because life insurance is a legacy you leave to protect your family.
Work with your advisor to assess your priorities and ensure your life insurance benefit is designed to meet your intentions. Let’s take a look at Donna’s situation.
Donna currently has $250,000 of life insurance in place. $50,000 of her coverage is provided through her employee benefits plan and $200,000 was acquired through an individual insurance advisor. When she purchased the $200,000 of life insurance five years ago Donna opted not to complete an analysis of her life insurance needs.
Five years later Donna’s situation has changed and she now realizes it is important to have the right amount of life insurance is in place to protect her family. To determine her insurance need Donna’s advisor asks her a few easy questions. Upon completing the assessment her advisor tells Donna that given her current priorities she should have $550,000 of life insurance in place.
Donna’s immediate reaction is to be shocked she needs this much insurance and she is also concerned about the cost. However $550,000 is not a lot of money when she considers that this money is intended to cover her final expenses, pay off her mortgage and credit card debt, and recreate some of her income for the next 10 years.
In response to her current need Donna will maintain the $50,000 of life insurance through her employee benefits plan. It is recommended that she purchase a $500,000 term 10 life insurance plan. As a healthy 35-year-old non-smoker Donna is pleased to learn that the cost for $500,000 term 10 life insurance is affordable and can cost under $20.00 per month.
By meeting with her advisor and answering a few questions Donna learned that she needs more life insurance than the $250,000 she has in place. The entire process of assessing her need and applying for the right amount of insurance takes just a few hours of Donna’s time. The insurance company subsequently approves Donna’s application for her $500,000 policy. The end result is Donna now has affordable life insurance in place that offers her family the protection she wants to provide and the insurance they need.
At Benefits Consulting Plus we advocate for each client to complete an assessment of their current insurance need. The amount and type of insurance the client decides to apply for is a combination of insurance need and premium affordability. There is never a cost to meet or pressure to buy.
When you are ready to investigate your individual insurance need please contact us.
Shannon Bennett-Parisotto, CHS
Individual Insurance Advisor
Benefits Consulting Plus
844-546-2282 or Shannon@bcpbenefits.com
I’d like to learn more about working with Benefits Consulting Plus
t: 613 546-2282