Life Insurance Breakdown
Facts about life insurance in America
- 93% of Americans believe that life insurance is a necessity.
- 3 out of 10 households are uninsured. That means 35.000.000 families don't have the coverage that they need.
- 2/3 of Americans believe that having insurance provides peace of mind.
Why buy now?
- A (Needs): 1) Marriage; 2) Family; 3) Home; 4) Inheritance.
- B (Rates): 1) Rates increase with age, health, and other factors; 2) Smoker rates increase by around 20% or more.
What do you want to cover?
- A (Funeral costs): The average funeral can cost $20.000. Plus, will your family be able to cover these expenses? Or will they need help?
- B (Income of deceased): 1) 7 out of 10 families are dependent on 2 incomes; 2) 40% say they would have trouble covering immediate day to day expenses following the death of a spouse; 3) Recommended coverage is
ten times gross income.
Take needs & reasons for wanting coverage (funeral costs/income) to determine amount & type of policy desired
- A (Term): 1) Supplies coverage for a specific amount of time, often 5-30 years; 2) Lower premium/larger face value: There is no cash value, this is strictly an insurance policy; 3) Premiums won't change during the
original term of the policy.
- B (Whole life): 1) Offers coverage for your whole life; 2) Bigger payment/growing investment: You can access cash through loans or withdrawals; 3) Premiums can increase over time.