Frequently asked questions about life insurance

Who needs life insurance?

If someone depends on you, you probably need life insurance.  If you were to die today, life insurance would provide cash to your dependents that can help meet everyday living expenses, pay down the mortgage, finance longer-term goals like education and retirement, and generally maintain their quality of life.

Where do I begin?

Start by evaluating your family's needs.  Gather all your personal financial information and estimate what your family members would need to meet current and future financial obligations and maintain their quality of life if you were gone.  Include ongoing expenses (such as day care, tuition, continuation of a business or retirement), and immediate expenses at the time of death (such as debts, medical bills, burial costs and estate taxes.)

How much life insurance do I need?

While there is no substitute for evaluating one's needs with the aid of an insurance and financial adviser, one rule of thumb is to buy life insurance equal to five to ten times your annual gross income.  To get a sense of how much coverage you need, you can visit the Insurance Needs Calculator at Nick Reed Agency.

What are the different types of life insurance?

There are many kinds of life insurance, but they generally fall into two categories; term insurance and permanent insurance.  Term insurance provides protection for a specific period of time (the "term") and pays a benefit if you die during the term.  A permanent insurance plan provides lifelong protection.  As long as you pay the premiums, and no loans, withdrawals or surrenders are taken, the full face amount will be paid.

Want to learn more?  Stop by the office or visit us on the web at www.nickreedagency.com

Til next time-

Katie

Nick Reed Agency  6632 Monticello Rd. Shawnee, KS 66226  (913) 422-0123