We’ve all heard about the importance of having life insurance, but is it really necessary? Often, the answer is “yes,” but it depends on your specific situation. And it’s also important to determine how much coverage you need.
Our comprehensive financial planning process allows us to get to know you well enough to Stand in Your Shoes™ before making any recommendations, including an evaluation of your life insurance needs. Our advisors will ensure that you have the right amount of coverage to protect your loved ones.
In general, you should consider life insurance protection if any of the following applies to you:
- You are married and your spouse depends on your income
- You have children
- You have an aging parent or disabled relative who depends on you for support
- Your retirement savings and income won’t be enough for your spouse to live on
- Your estate may be subject to federal or state estate taxes
- You own a business, especially if you have a partner
- You have a substantial financial obligation such as a personal loan for which another person would be legally responsible after your death
In these cases, the proceeds from a life insurance policy can help the people you leave behind after your death.
If you’re still unsure about whether you should buy life insurance, ask yourself: If I died today with no life insurance, would my family need to make substantial financial sacrifices and give up the lifestyle to which they’ve become accustomed in order to meet their financial obligations (e.g., loans, mortgages, college tuition, etc.)?
If you decide you need life insurance, don’t delay buying it. Although no one wants to think about and plan for death, you don’t want to make the mistake of waiting until it’s too late.
There are expenses associated with life insurance. Generally, life insurance policies have contract limitations, fees, and charges, which can include mortality and expense charges, account fees, underlying investment management fees, administrative fees, and charges for optional benefits. Most policies have surrender charges that are assessed during the early years of the contract if the contract owner surrenders the policy. Any guarantees are contingent on the financial strength and claims-paying ability of the issuing company. Life insurance is not guaranteed by the FDIC or any other government agency. The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased.
If you are considering the purchase of life insurance, contact one of our advisors today to explore your options.
*Past performance is not an indicator of future results. This material is not financial advice or an offer to sell any product. The statements contained herein are solely based upon the opinions of Elevage Partners, LLC (“Elevage”). Elevage is a registered investment adviser. More information about the firm can be found in its Form ADV Part 2, which may be requested by calling (877) 922-8243 or visiting http://www.adviserinfo.sec.gov. The information contained herein is derived from sources we believe to be reliable, but which we have not independently verified. Elevage assumes no responsibility for errors, inaccuracies or omissions in this information. Elevage reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs. The information provided in this report should not be considered a recommendation to purchase or sell any particular security. There is no assurance that any securities discussed herein will remain in an account’s portfolio at the time you receive. It should not be assumed that any of the securities transactions, holdings or sectors discussed were, or will prove to be profitable, or that the investment recommendations or decisions Elevage makes in the future will be profitable or will equal the investment performance of the securities discussed herein.ELV-17-02