Types of Insurance you may want to consider for Family Life Planning

Insurance can make a huge difference in situations involving death and tragic events such as accidents and serious illness. For a family, some type of life insurance is a key piece to family life planning. Think about how your life would be affected if you lost one or all of your income at once. Do you have enough money in savings and investments to survive on? Most people do not. Ask your employer, credit union, or insurance broker about what types of insurance they offer. If you speak with a broker, they can review with you what types of insurance they suggest. Types of insurance to consider, but not limited to:

• Life Insurance
• Short Term Disability
• Long Term Disability
• Long Term Care
• Critical Illness/Cancer Policy

Depending on the type of life insurance, other events such as terminal illness or critical illness may also trigger payment. Other expenses, such as funeral expenses, are also sometimes included in the benefits. Speak with your insurance broker to learn more. Typically the broker that you receive home or auto insurance through may be able to provide you with a quote.

Life insurance is good only if you maintain payments. Ensure you do not get more insurance than you can pay for. Some policies may provide a rider that pays premium if you cannot afford to do so, due to illness or job loss. Also remember most life insurance is based upon age and health. It benefits you to obtain life insurance as young as possible. Also if you do not use tobacco and and are healthy, you may be eligible for better rates.

Homework                                                                                                                                       Meet with a broker and review what types of life insurance you should consider getting for yourself and your spouse. If you already have insurance, review if you have enough, and how long your policies are for. Things to think about:

• How much money does your family need if you die?
• How much will a funeral cost?
• How long does the money need to last? Do you need to provide for someone for their retirement or the remainder of their life, (such as a mentally or physically handicap dependent)?  Or do you only need to provide for a few years until they are back on their feet?
• What are your living expenses? How much money do you need to survive if you or  your spouse died? Think in terms of minimally and best case.
• Do you own a home/property? How much do you owe a lender. Some brokers may advise to have at least 1.5 times of what you owe in life insurance.
• How much debt do you owe? Some states may require that a legal spouse be responsible for all debts.
• Do you need to provide an education fund for college or private school for your children?

Attach a copy of all your life insurance copies to the back of your worksheet. Also ensure that you inform your beneficiaries that you have designated them, in case of your death. Most policies allow for up to one alternate beneficiary.