Get $ Fit Challenge- September 2015

This months Get $ Fit Challenge is dedicated to….

It’s Life Insurance Awareness Month!

According to LIMRA*, 30% of U.S. households have no life insurance whatsoever. What???


What’s the big deal? 

None of us know when our time is up.  It could be today, tomorrow or at a ripe old age.  Is your household one of the 30% that has no life insurance?

If you are one of the 70% that do, when was the last time you had a thorough insurance review done?

Why have insurance reviews?

Life insurance rates are based on a number of things.  One very important factor is mortality tables.  These tables are statistics that tell us the average life expectancy for men and women.  They are updated by the insurance underwriting group every few years.  People are living much longer, as you probably know.  Therefore, the actual rate charged for term insurance and the insurance portion of cash value products has gone down dramatically over time.

Why Is This Important? 

If you have a policy that was issued in the mid 1980’s, 1990’s or early 2000’s you are probably paying more for the pure insurance cost than an equivalent policy would cost you today.  Now, you do have to take your current age and health condition into consideration; but this is one great way to potentially save yourself some money.

Term Life Insurance?

For many families, term insurance can make a lot of financial sense.  It allows younger and healthier folks to purchase larger face amounts – death benefits for less money.  You tend to need more life insurance to replace future income when you are younger.  By younger I generally mean under age 50.

With term life insurance you are paying the pure cost of protection for whatever number of years you purchase.  Term is commonly written with level premiums for 10, 15, 20, 25 or 30 years.  At the end of the term the policy can continue to exist; however the premiums will really go way up.  If you still need insurance at the end of the term, and you are healthy and insurable, you are most always better served to apply for a new life insurance policy.  Don’t be fooled by the online sites – many of the low ball quotes you hear are for super preferred rates.  These low rates are available to only the healthiest people applying.  Many in the population can’t qualify.

If you can’t qualify or have a disease like diabetes, it is important to shop around with different companies.  That’s how an independent agent should be able to help you.  With one medical history, I am able to speak with underwriters at different companies.  Some just offer better rates and ratings to folks with high cholesterol, blood pressure issues, type II diabetes and so forth.  Once I know what company tends to view a certain condition more favorably, I can potentially save the client time, money and aggravation with a more streamlined application process.

Why It’s Beneficial

I’m a child who benefited from my Dad having life insurance.  He died unexpectedly of a heart attack when I was just seven years old.  The insurance he left funded a trust that provided income for my Mother and me over many, many years after his death.  Reflecting on this situation now, as an adult, and knowledgeable about the financial planning industry, I can see what a priceless gift his prior planning was for us.

A similar situation happened to my neighbor last year.  My seemingly healthy, young, dynamic neighbor died of a heart attack suddenly leaving a ten year-old son and wife.  His wife has a great job and can support herself and her son but the life insurance we had placed on her husband has provided added security for the family and given them a big cushion should anything else unexpected happen.  This tragic event sparked conversation within the neighbors and friends and hopefully made them review their own life insurance and financial plans.

Ask Yourself

When was the last time you visited with your financial planner?  Being independent and a Certified Financial Planning Practitioner, I highly recommend that you take action now.  Have a comprehensive insurance evaluation done on your entire insurance portfolio.  Get a financial plan in place.  Protect yourself, your spouse and your children.  Protect those who depend on your income and contribution to your family or business.

Being sure you are adequately insured for LIFE and other risk areas is an important Financial Strategy for Life.

Call me if you are interested in an independent evaluation.   I am independent and don’t represent just one or two companies I can provide insight into what you own and we can review if it meets your current needs.

* LIMRA stands for Life Insurance Marketing and Research Association

About Sara Seasholtz

Sara Seasholtz, CFP®, was voted one of "50 Most Influential Women in Charlotte" by The Mecklenburg Times in 2011, and has assisted her clients with their financial planning needs for over 40 years. Have a financial question? ASK SARA!


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