The Basics of Life Insurance

I want to introduce a video called the Basics of Life Insurance. Life insurance is kind of like the moat around your castle. It is an important part of a family’s financial foundation, yet a high percentage of people do not own life insurance, or only have life insurance through their employer. It is important to look at what would be the financial impact to your family if something were to happen to you.

Basically there are two types of life insurance:

• Term Insurance, which is like renting.
• Permanent or Whole Life Insurance, which is like owning.

The first thing everyone should do is determine the right amount of life insurance for their family. How much is the right amount? You will get lots of different opinions. Most people have homeowners or car insurance. I like to ask our clients what they expect from those policies. For example, car insurance – You come out of work and the car is gone. They would like to get a check for what the car was worth, which is what we call guaranteed replacement cost.

The same thing should be considered for a human being, but what is the guaranteed replacement cost of a human being? We can’t replace the emotional aspect provided by a mother or father, breadwinner, etc., but what we can do is theoretically replace the income that would be generated by the insured. Someone who is 40 years old, makes $100,000 a year, and works to age 65, would theoretically bring in $2.5 million dollars. That might be the right amount of life insurance to consider.

In any case, watch this short, 2-minute video and let’s discuss how we can implement and help you understand what might be the right life insurance for your family.

Your questions and feedback are very important to me.

Please email me at michael@swanwealth.com

Registered Representative offering Securities through American Portfolios Financial Services, Inc. (APFS) Member FINRA/SIPC. Investment Advisory Services are offered through G&G Planning Concepts, Inc. which is not affiliated with APFS.

Any opinions expressed in this forum are not the opinion or view of American Portfolios Financial Services, Inc. (APFS) or American Portfolios Advisors, Inc.(APA) and have not been reviewed by the firm for completeness or accuracy. These opinions are subject to change at any time without notice. Any comments or postings are provided for informational purposes only and do not constitute an offer or a recommendation to buy or sell securities or other financial instruments. Readers should conduct their own review and exercise judgment prior to investing. Investments are not guaranteed, involve risk and may result in a loss of principal. Past performance does not guarantee future results. Investments are not suitable for all types of investors.

Print / PDF