What does it cost NOT to have life insurance?
Edward Jones - Chad Choate, AAMS
For more information about the author, click to view their website: Edward Jones
Sep 07, 2023
Florida - Sarasota, Bradenton & Charlotte Counties
Email US
Click to Email Us
It’s probably not on your calendar, but September is Life
Insurance Awareness Month. And that means it’s a good time to become more aware
of the benefits of having life insurance — and the dangers of not having
it.
Unfortunately, confusion about some
of the basic elements of owning life insurance may be keeping people from
getting the protection they need. More than half of uninsured Americans say they
have put off purchasing coverage because they don’t know what to buy or how
much they need, according to Life Happens and LIMRA, two nonprofit
organizations that provide research and education about life insurance.
Yet, while this confusion may be
understandable, a delay in acquiring appropriate insurance can be costly in
more ways than one. From a strict dollars-and-cents perspective, it’s generally
much more affordable to buy life insurance when you’re younger. But there are
potentially much greater costs involved in not having insurance when it's
needed — and these costs are personal.
To be specific, what is it worth …
… to know your family could stay
in your home if something happened to you?
… to know your children could
continue their education plans?
… to know your debts could be
paid without burdening your family?
Clearly, if you were to assign these benefits a “price tag,” it
would be pretty high.
And that’s
the value of owning sufficient life insurance.
So, let’s return to the issue of people
putting off buying insurance because they don’t know how much they need, or
what type they should have:
• How much is enough? You
might hear that you need life insurance equal to about seven to 10 times your pretax
annual salary. That’s not a bad “ballpark” figure, but not everyone is playing
in the same ballpark. To get a true sense of how much of a death benefit you require
from your life insurance, you’ll need to consider a variety of factors,
possibly including your current income, spouse’s income, the size of your
mortgage (in addition to other liabilities), number of children, educational
expenses and final expenses for funeral arrangements.
• What type? You can essentially
choose between two basic types of life insurance: term and permanent. As its name
suggests, term insurance is designed to provide coverage for a designated period,
such as 10 or 20 years. Generally speaking, term insurance is quite affordable
for most people, especially when they buy policies as young adults. On the
other hand, permanent insurance, such as whole life or universal life, is usually
considerably more expensive than term insurance. This is because permanent
insurance premiums, in addition to providing a death benefit, help build cash value,
which you can typically access through loans or withdrawals, giving you
additional flexibility should your financial needs change over time. In
choosing between term and permanent insurance, you’ll want to evaluate several
issues, such as how long you think you’ll need coverage and how much you can afford
to pay in premiums.
Finding out about the benefits,
costs and types of life insurance can help you make informed choices to help protect
your family for years to come — so don’t delay learning what you need to know.
828 3rd Avenue West
Bradenton, FL 34205
941-462-2445
This article was written by Edward Jones for use by your local Edward
Jones Financial Advisor.
Other Articles You May Like
Medicare/Medicaid/Insurance in Lafayette, CO
When an older adult needs help at home and sees several clinicians, a coverage decision can affect everything from prescription refills to rides. If youre considering TRU PACE in Lafayette, start by asking how enrollment would change the care and coverage you already use. How Medicare and Medicaid Fit Into PACEPACE is the Program of All-Inclusive Care for the Elderly. It coordinates healthcare and support for eligible adults who meet a state standard for nursing home-level care and can live safely in the community with PACE support at enrollment. Applicants must also be 55 or older and live in the programs service area. TRU PACE and Your Current CoveragePhone: 303-665-0115Medicare says people with Medicaid pay no monthly PACE premium. Medicare beneficiaries without Medicaid pay premiums for the long-term care portion and Medicare Part D drugs. Medicare also says participants owe no deductible, copayment, or coinsurance for drugs, services, or care approved by their PACE team. Ask TRU PACE for an estimate based on your individual coverage before enrolling. Doctors, Prescriptions, and Existing ServicesTRU PACE says it becomes the participants insurance provider at enrollment. Participants generally receive care through the programs provider network. Bring a list of your doctors, medications, and scheduled services. Ask which providers are in the network and how the team would coordinate any changes. Why This Matters in LafayetteIf you regularly see a clinician near home or have a specialist visit scheduled outside Lafayette, give the enrollment team the names and dates. Ask which appointments can continue and what to do about any refill due around the enrollment date. How to Get Started1. Gather Your Coverage InformationHave your Medicare and Medicaid information, if applicable, along with details of any current plan. List the appointments and prescriptions you rely on most.2. Ask for an Enrollment and Cost ReviewCall TRU PACE and ask for your expected monthly cost, when any coverage change would take effect, and who would help coordinate the transition. Related Seniors Blue Book CategoriesPACE Adult Day Services Care Management
Funeral Cremation & Mortuary Services in Lafayette, CO
After a death, families may have to make several decisions in a short time. Others prefer to talk through their wishes ahead of time. In either situation, it helps to separate the practical arrangements from the decisions about how to gather, remember, and say goodbye. What Funeral and Mortuary Services CoverA funeral home can help arrange transportation and care of the person who died, assist with paperwork, and coordinate burial or cremation. A family may also arrange a viewing, funeral, memorial, or private gathering. Ask which decisions need to be made immediately and which can wait. The Natural Funeral in LafayettePhone: 720-515-2344The Natural Funeral lists natural burial, flame cremation, water cremation, and terramation, also called natural organic reduction. Water cremation uses an alkaline water process, and terramation transforms remains into soil. If one of these options interests you, ask what the process involves, how long it typically takes, and what the family receives afterward. Planning a Gathering and Reviewing CostsThe Lafayette funeral home is at 102 W Chester Street in Old Town. Ask what can take place at the Lafayette location and which parts would involve another venue or a cemetery. Request a General Price List and a written breakdown of your choices so you can see which fees cover the funeral homes work and which come from outside providers. Why This Matters in LafayetteIf relatives are coming from out of town or some guests have limited mobility, ask about parking, step-free access, and how many people the gathering space can accommodate. If you plan to hold a service and burial at different locations, check how much time guests will need between them. How to Get Started1. Write Down the Persons WishesLook for written instructions and note any cultural or religious preferences. If youre planning ahead, tell a trusted person where you keep your instructions and whom to call.2. Ask for a Written PlanCall 720-515-2344 and ask what is needed on the first call. Once youve discussed options, request the expected timeline and itemized costs before approving arrangements. Related Seniors Blue Book CategoriesCounseling Hospice Advance Care Planning
Adult Day Services in Lafayette, CO
When an older adult spends most weekdays alone, families may need more than a place for them to go. They may also be juggling transportation, appointments, and help at home. TRU PACE in Lafayette offers a day center as part of a program that coordinates those needs for eligible older adults. What Are Adult Day Services?Adult day services offer daytime support outside the home. Depending on the program, participants may spend time with peers, eat a meal, take part in activities, or receive help with daily needs. Some centers accept people directly. The Lafayette TRU PACE center serves people enrolled in its broader Program of All-Inclusive Care for the Elderly. TRU PACE in LafayettePhone: 303-665-0115TRU PACEs Lafayette center is at 2593 Park Lane. The program coordinates medical and social services and arranges transportation to the day center and medical visits as needed. Ask the enrollment team what a typical center day includes, how often a participant might attend, and how the team decides what support to arrange at home. Who May QualifyPACE applicants must be at least 55, live in the programs service area, meet the states standard for nursing home-level care, and be able to live safely in the community with PACE support at enrollment. Ask how enrollment would affect access to current doctors and prescription coverage before making a decision. Why This Matters in LafayetteWhen family members already drive someone to several appointments a week, a coordinated schedule can change who needs to be available and when. Ask how pickup would work at the persons Lafayette address and who to call if a ride or appointment changes. How to Get Started1. Ask for an Eligibility ReviewCall TRU PACE. Have the participants ZIP code, current coverage, and a short list of the help they need. 2. Ask to Visit the CenterFind out what the participant might do on a center day, how transportation works, and what changes to their current care arrangements enrollment would involve. Related Seniors Blue Book CategoriesCare Management Transportation Respite Care