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Life Insurance Awareness Month Tips

  • Date: 2011/09/01
  • LDS Wealth Advisers
  • Synopsis : Life Insurance tips to raise awareness among consumers and producers about the need for life insurance.

Main Document

LDS Wealth Advisers, an independent financial services firm based in Illinois, participates in September's Life Insurance Awareness Month by providing useful life insurance tips.

Life Insurance Awareness Month takes place each September in an effort to raise awareness among consumers and producers about the need for life insurance.

One of the most common reasons for buying life insurance is to replace the loss of income that would occur in the event of one's death. LDS Wealth Advisers has the experience and knowledge to financially prepare individuals and family members for an unexpected loss.

Barry Link, the President and CEO of LDS Wealth Advisers, shares this client story, "LDS Wealth Advisers recently had a client, age 38, who collapsed suddenly while playing racquetball and died of a heart aneurysm. The client was in perfect health, was married with four children, the youngest one being at six months. His wife was clearly devastated, but because the client had a life insurance policy, she didn't have to feel the financial pressure of losing the main source of income, paying their mortgage and raising four children on her own."

LDS Wealth Advisers provides the following four tips for choosing a life insurance policy:

1- Clients should understand individual needs and why they are needed:

One's life insurance needs depend on a number of factors, including marriage, family size, the nature of financial obligations, career stage and goals. For example, when someone is young, he/she may not have a great need for life insurance. However, as he/she takes on more responsibilities and raises a family, the need for life insurance increases.

2- Understand term insurance vs. permanent insurance:

The two basics of life insurance are term life and permanent life. Term policies provide life insurance protection for a specific period of time. They are available for periods of 1 to 30 years or more. Permanent insurance policies provide protection for one's entire life, reserve cash value, and should the policy owner discontinue the policy, that reserve can be returned to the policy holder.

3- Understand that insurance is for protection, not investing:

Life insurance is an agreement between the insured and an insurer. Under the terms of a life insurance policy, the insurer promises to pay a certain sum to a beneficiary upon his/her death, in exchange for premium payments. Proper life insurance coverage should provide one with peace of mind, and knowledge that loved ones will be financially protected.

4- Do the necessary homework:

Before deciding whether to buy term or permanent life insurance, consider policy cost and potential savings that may be available. Also keep in mind that insurance needs will likely change as family, job, health, and financial pictures change. Clients will want to build some flexibility into the decision-making process.

Proceeds from a life insurance policy make cash available to support one's family almost immediately upon death. Life insurance is also commonly used to pay any debts left behind. Life insurance can be used to pay off mortgages, car loans and credit card debts. Life insurance proceeds can also be used to pay for final expenses and estate taxes.

About LDS Wealth Advisers - LDS Wealth Advisers' mission is to positively impact the lives of its clients by providing personalized, objective financial advice and loyal service. The company is located in Wheaton, Illinois. With more than 60 years of experience between advisory partners, LDS Wealth Advisers thrives at performing extensive, ongoing research on insurance products, money managers, and alternative investment options. For more information, visit www.ldswealthadvisors.com

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