Life Insurance is a crucial step in planning for your future. Not only can life insurance fulfill promises made to your family if you are no longer around, there are several life insurance plans that provide benefits while you are living. As a full service agency, we offer Whole Life, Universal Life, Variable Life and Term Insurance.  Steven Salhaney is also a Registered Representative providing a variety Mutual funds and Annuity products.

DETERMINING YOUR NEED

The need for life insurance is dependent on your own personal and financial needs.  We can assist you in determining what type and amount of life insurance is appropriate for you.  Generally, you should consider life insurance if:

• You have a spouse
• You have dependent children
• You have an aging parent or a physically challenged relative who depends on you for support
• Your retirement savings are not enough to insure your spouse's future against a rising cost of living.
• You have a sizable estate
• You own a business

• The cash value earned and borrowed from a permanent life insurance policy can be used to help with large expenses, such as college education or a down payment on a home.
• The growth of a cash value policy is tax deferred.  You do not pay taxes on the cash accumulation until you withdraw funds from the policy.
• Life insurance can be used to cover funeral expenses and pay estate taxes.  Consult with your tax advisor for more details.

LIFE CHANGES – SO SHOULD YOUR POLICY

Your need for life insurance is dependent on your personal and financial needs. As your life changes, your life insurance coverage may need to change as well to adapt to your current needs.  Some life changes that may require a policy checkup are:

• You recently married or divorced
• You have a new child or grandchild
• You are providing care or financial assistance to a parent
• You recently purchased a new home
• You are planning for a child or grandchild's education
• You are concerned about your retirement income
• You have refinanced your home mortgage within the last few years
• You or your spouse recently received an inheritance

FREQUENTLY ASKED QUESTIONS
1. HOW MUCH LIFE INSURANCE SHOULD I OWN?     Rough rules of thumb suggest an amount of life insurance equal to 5 to 8 times annual earnings.  However, many factors should be taken into account in determining a more precise estimate of the amount of life insurance needed.  These important factors include:

1. Income sources and amounts other than salary.

2. Whether or not the individual is married and, if so, what is the spouse's earning capacity.

3. The number of individuals who are financially dependent on the insured.

4. The amount of death benefits payable from Social Security and from an employer sponsored life insurance plan.

5. Whether any special needs exist, i.e. mortgage repayment, education fund, estate planning need etc.

It is recommended that you speak with an insurance advisor for a precise calculation of how much life insurance is needed.

2. SHOULD I BUY TERM INSURANCE OR CASH VALUE INSURANCE?
Although a difficult question, several principles should be followed in addressing this issue. There are two basic questions that must be answered. First, How much life insurance should I buy? Then, What type of coverage can I afford.  The insurance question should always be resolved first.  For example, the amount of life insurance that you need may be so large that the only way you can afford the coverage is through the purchase of term insurance with its lower premium in the early years. 

If your ability to pay life insurance premiums is such that you can afford the desired amount of life insurance under either type of policy, then it is appropriate to consider which type of coverage to purchase.  Important factors affecting this decision include your income tax bracket, whether the need for life insurance is short or long term and the rate of return on alternate investments with similar risk.

3. HOW DOES MORTAGE PROTECTION TERM INSURANCE DIFFER FROM OTHER TYPES OF TERM LIFE INSURANCE? The face amount of mortgage protection term insurance decreases over time, consistent with the outstanding balance  of the mortgage loan.  Mortgage Protection policies are generally available to cover a range of repayment periods, i.e. 15,20,25 and 30 years. Although the face amount decreases over time, the premium us usually level in amount.  You may be better served by a regular term insurance policy.

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