Life Insurance

What You Need to Know About Life Insurance – With Andrew Darlington

Click here for the audio of Andrew explaining what you need to know about life insurance!

Life insurance is one of those things you don’t like sitting and talking about, especially with your family. It means you are going to die. No one likes to talk about that. But if you are gone, who is going to provide the income to your family that you’re providing right now? Let’s say you’re making $40,000 a year, can your wife live the way she’s living right now with your family if there’s not another $40,000 coming in? That’s the question you need to ask yourself. Life insurance is cheap. It is not very expensive at all. If you’re in good health, you can get life insurance for next to nothing, and we even have programs right now where you don’t have to give blood, step on a scale, fast, or pee in a cup—none of that. And in twenty minutes you can get preferred rates. So here’s what you need to think about: if you are gone, whatever you’re making right now, you need 10 to 15 times that in life insurance. Why? If you make 10,000 dollars a year, and you have 15 times your income in life insurance, that’s a $150,000 dollars in life insurance. Your wife can invest that money with a good financial advisor, and they will tell her to take 4 to 6% of that per year, and live on it for the rest of her life. If you have 6% of $150,000 a year, you are going to end up with right about $9,000 a year. If you were making $10,000 a year, this is going to give your wife $9,000 dollars a year, and for the most part, if we look at historical results, she should be able to take that $9,000 a year, keep up with inflation, and not have to use any of that principal. She can keep on doing what she is doing, either working or staying at home with the kids–but either way able to replace your income. That’s what life insurance is about: being able to replace lost income if someone dies. The opposite is true for your wife. If she dies, you need 15 times her annual income in life insurance. If your wife is a stay at home mom, she is worth a lot of money. She’s cooking, she’s clean, she’s driving the kids everywhere. If something happens to her, even if she is not bringing home an income, it’s going to cost you a lot of money to have someone do all those things for your family, because she’s not there. So you need to sit down to talk to your wife and find out exactly how much life insurance you need to replace your income, and how much you need on her that would replace either her income or the work she does in the house. If you are 25 years old and in good health, you can have a $100,000 ten-year term for less than $10 a month. Sit down and make sure you have enough life insurance. Most people do not have nearly enough life insurance. Statistics say about 20% of the people in America actually have the life insurance that they need to protect their family. Make sure that you’re not one of them by getting the life insurance you need. Call us today and we can help! Megan Jackson in our office does a phenomenal job helping folks with life insurance. Call her today at (423) 292-4142 and let us help you get your family protected with the life insurance you need. Also, if you have been declined for life insurance in the past, learn how we can help you get coverage!