Purchasing Life Insurance is not something that one does on a regular. This decision is often made a few times over the course of one’s lifetime.

With September being Life Insurance Awareness Month, we deemed it necessary to provide a helpful blog pertaining to the very subject!

 Before you make that move to protect yourself and your family, we have 3 points of advice you should consider, before applying your signature to that pending application.


1.       Before you buy a Whole Life Policy, consider how bundling in some Term Life may aid in accomplishing your goals.

Most people only need a significantly large cash benefit for 20 to 30 years. This usually covers mortgages, years of employment, or growing children. Once the house is paid, and the kids are done with school, your need may be significantly different.  Term Life Insurance is a great vehicle to accommodate these gradual changes. Consider adding a 20-30 fixed year term to your portfolio to handle these ever changing life events. 

2.       Speaking of those children, you  may want to think twice before naming a minor as a beneficiary.

You can not directly pass life insurance money on to a minor. Sometimes the proceeds can be held until the child is 18. Without proper controls in place, you could be setting your child up for disaster. We have witnessed clients leave money to minor children, and when the child turns 18, they blow the proceeds frivolously. One child in particular blew most of their money gambling. One vehicle to consider setting up is a trust. The trust can receive the money, and you can have it set up to outline acceptable uses of the funds. You could also disburse a certain amount of money at different ages (i.e 18, 21, 25, 30, etc).

3.       Make your policy binding, by including payment with your Life Insurance application!

This may sound strange, but in the off- chance that you should pass before your application is processed, to ensure your family’s financial needs are met, a check to cover the first payment will bind coverage retroactively to the date that you signed your application.

These purchases can be tough to make, but Life Insurance is one of the SMARTEST items that you could add to your family’s financial portfolio. Take it from us, your family will appreciate it!

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