Insurance Series - Post 1: More Than a Mystery

I love mysteries, and yes, that includes murder mysteries. Many times on tv, to solve the whodunit, you only have to follow the money - insurance money. Who benefits from a big life insurance? Probably not the butler!

Do you have life insurance? Do you need life insurance? The answer is, maybe. Everyone's situation is different. Life insurance should be used as a tool, not a retirement plan. Life insurance should be used as protection to replace lost earnings due to the death of a loved one.

Generally, there are two types of life insurance:  Term and Whole Life.

A Term (temporary) policy should be a tool to replace the earnings your family depends on, and you would have collected had you lived and worked. Term policies generally should cover you through your working life. Ideally, you would have enough money/investments/savings in reserves to take you through retirement. For example, if you are 45 years old, with a spouse and children at home, and you are the family breadwinner, you may want a 20 year term life policy to replace your income for the remainder of your working life, and ensure your family's lifestyle will not be altered financially upon your death. Term policies are usually very affordable, especially when purchased at a younger age, because younger people are not expected to die.

A Whole Life Policy is a permanent policy that you pay for your whole life. Some people are more comfortable to buy a whole life policy, because it will follow you through retirement, and it will build a cash value over time. These policies can eventually be cashed in, borrowed against, or may result in a larger benefit for your survivors. However, these premiums are usually more expensive. You might be interested in a whole life policy if you have a dependent (maybe a disabled family member) who will need additional financial support should you pass away during your retirement years, and they are dependent on your retirement income for their needs.

There are numerous variations of these two policies. To determine what best fits your needs, talk to your favorite insurance agent to see what is offered, then sit down with the New Perspectives staff to decide which best fits in your overall financial picture and future plans. We can help you solve the insurance mystery!

Crossing Over

I've spent a lot of time and energy trying to keep my work life and my personal life separate. There are times when the two merge and there's nothing you can do about it. Sometimes, I'm grateful for this type of crossing over.

At work, I'm beginning to study for the CFP - Certified Financial Planner designation. I've truly enjoyed the material, because it allows me to use my past experiences in my present work. It makes me feel like everything I've been through will be put to good use - to help someone else. 

One of the areas I am studying is insurance. I'm sure someone reading this post just rolled their eyes! I don't blame you. It's not a glamourous topic. But, insurance has been a huge part of my personal life while taking care of my family, and my work life, since my background is in hospital and clinic finance and accounting. Insurance was always a necessary evil to navigate and to know.

My husband and I are in the adoption process and have been for some time. Right now, we are reviewing what kind and how much life insurance we need before we become parents. I'm very glad to enjoy tedious work, because my husband hates such. So, the insurance review tasks are mine at home. But I can share them at work!

Are you more like my husband and the thought of pulling out those old policies gives you an instant headache? Or maybe, like him, the world has stopped turning because college football season has priority over anything else. 

I really can't blame you. It's not the most fun in the world. But, do you know that if you are a managed client at New Perspectives, you don't have to review your insurance alone? We do not sell any products, insurance or otherwise, but we always want to get as complete a picture of your finances as possible. Your insurance protects the wealth we are advising you on.

In the coming weeks, I will be blogging about some general insurance topics that we should all be aware of and knowledgeable about. 

Do you know what insurance you are paying for? Do you really know what benefits you have? Do you have a conversational relationship with your agent, so that you can ask questions anytime? My job, thankfully, is not to sell these products - a saleswoman, I am not. My job is to help you become  knowledgeable about the products and services you pay for with your hard-earned money. Will that policy be a help or a hindrance when you need it? If you haven't looked at the details in a while, chances are good in favor of the latter.

Join me as we take a deeper dive into the world of insurance. A world that our world may depend on one day. More information to come!