Life insurance is a product that helps individuals, families and businesses to prepare and protect financially against the unexpected loss of a spouse, partner, parent or key employee.
Individuals typically buy life insurance for the following reasons:
- Family Protection
- Final Expenses
- Emergency Fund
- Education
- Mortgage Protection
- Retirement Planning
Businesses typically buy life insurance and disability income protection for the following reasons:
- Protection against income loss
- Key Person insurance
- Collateral for business
- Buy/sell planning
Consider the following in determining the right amount of insurance:
- Annual income that needs to be replaced
- Education savings needs to be provided
- Inflation protection for surviving family members
- Amount of mortgage or mortgages
- Special needs of surviving family members
- Purpose of the insurance
Factors that contribute to the cost:
- Amount of insurance desired (how is that determined?)
- Permanent or term?
- Date of Birth
- Do you smoke?
- Height and Weight?
- Personal and family history
- Are you taking any medications?
- Any avocations? (scuba diving, private pilot, etc.)
