​Life insurance is an effective tool to guard against a catastrophic risk. While your death may not be likely or probable, it is possible. People pass away unexpectedly due to accidents or are diagnosed with terminal illness all the time, even at relatively young ages. Your death may create financial challenges for your loved ones. Life insurance minimizes the financial risk by paying a tax-free lump sum to your beneficiaries.
 
Perhaps you already have life insurance. Many people purchase it when their life changes. For example, you may have purchased coverage when you got married or had kids. Or perhaps you bought life insurance when you purchased your first home.
 
At first glance, you may not think your life insurance needs regular review. After all, as long as you pay the premiums, your policy is in force. What’s there to review?
 
Life changes quickly, though, and it’s possible that your needs and goals have changed. If you’ve experienced change in your life, this may be a good time to review your coverage. Below are three common life changes and how they could impact your life insurance needs:

Family and Dependents
 
Life insurance is commonly used to protect dependents against financial loss after the death of a provider. If you’re the breadwinner in your family and you pass away, your spouse and kids could struggle with debt and a lack of income.
 
If you’ve recently gotten married or had more children, it may be time to evaluate your protection. More people in the house means a greater potential financial need after your death. Your current level of protection may not be sufficient.
 
You also may want to review your coverage if you have fewer dependents in the home. For instance, maybe your children are grown and are financially independent. Or maybe you recently got divorced. In that case, you may not need as much protection. You also may consider keeping your policy but simply changing your beneficiary. A financial professional can help you develop the right strategy.

Health
 
When you first purchased your life insurance, did you get an unfavorable rating or a high premium because of health issues? Has your health improved since then? If so, you may want to apply for a new policy. This is especially true if you’ve made a major change such as losing weight or quitting smoking. Even if you’re older, a new policy that gives you a better health rating could have a significantly lower premium.
 
You also may want to review your insurance if your health has declined. This is especially true if you have a term policy that’s expiring soon. Your term policy may allow you to convert to a permanent policy without going through underwriting.

Career
 
Has your income increased in recent years? Did you get a promotion, change employers or maybe even start a business? If so, you may want to review your needs and coverage. In fact, the whole point of your insurance may be to replace your income if you pass away. If your income increases, so too does the amount that needs to be replaced.
 
Your life insurance coverage amount should be based on your family’s specific needs. How much would your spouse and children need to pay off debts? How much would they need to survive and pay the bills? Do you want to pay for any other goals, such as education or your spouse’s retirement? Again, a financial professional can help you answer these questions and more.
 
Ready to review your life insurance strategy? Let’s talk about it. Contact us today at Stoll and Basler Financial Services. We can help you analyze your needs and make the necessary adjustments. Let’s connect soon and start the conversation.
 
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
17962 – 2018/9/4

​Are you one of the 56 percent of American consumers without life insurance? Or are you among the 40 percent who own life insurance but not enough? Life insurance ownership has been on the decline for decades. In fact, LIMRA, an insurance industry organization, estimates that Americans as a group are underinsured by more than $15 trillion.1
A wide range of reasons can explain why people don’t buy life insurance. However, the truth is that if your death would cause financial difficulty for others, you likely need some level of protection. You may need insurance to provide for your spouse and children after your death. Perhaps you need a policy to benefit your business partners. Or maybe you care for an elderly parent or other family member.
Whatever your reason, there’s likely a policy out there that fits your goals and your budget. If you’ve been putting off life insurance, you may want to think about why. It’s possible that you’ve bought into false ideas. Below are a few common myths about life insurance and why you shouldn’t believe them:

I can’t afford life insurance.
 
By far, the most common reason why people don’t buy life insurance is that they think it’s not affordable. According to LIMRA, 83 percent of those who don’t have life insurance say they believe it’s too expensive. In fact, a study found that most Americans believe life insurance costs more than double what it actually does.1
If you’re worried about fitting life insurance into your budget, consider a term policy. These policies provide protection for a limited amount of time, such as 10 or 20 years. Because the coverage doesn’t last forever, a term policy is usually far more affordable than a similar, permanent policy. A financial professional can help you find the right policy for your budget.

I have life insurance at my work, so I don’t need an individual policy.
 
Many employers offer life insurance as part of a group benefit package. Some coverage may be free, while additional coverage could be affordable for a discounted cost. If you participate in your employer’s group life insurance plan, you may not feel that you need additional insurance.
While group life insurance is a helpful benefit, it doesn’t mean you don’t need your own protection. If you leave your employer, you’ll likely lose your insurance. If your health has declined, you may not be eligible to purchase insurance after leaving your job. Of course, you can avoid that risk by purchasing an individual life insurance policy today.
​
I’m too young and healthy to worry about life insurance.
 
Life insurance provides protection against the financial fallout from your death. If you’re relatively young and healthy, you may not be concerned about passing away. While it’s possible at any age, there may not be a high likelihood of death for you.
However, the best time to buy life insurance is when you’re young and healthy. Life insurance premiums are based in large part on the probability of your death. The older and unhealthier you are when you purchase life insurance, the higher the premiums will be. You can save yourself significant money over the course of your life by purchasing life insurance at a young age.
 
Ready to find the right protection for your needs and budget? Let’s talk about it. Contact us today at Stoll and Basler Financial Services. We can help you analyze your needs and develop a plan. Let’s connect soon and start the conversation.
 
1https://www.thinkadvisor.com/2013/08/30/the-shocking-statistics-behind-the-life-insurance/?slreturn=20180727144059
 
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
17965 – 2018/9/4