Broker Check


Q: Do I Need Life Insurance?

Both independent and government studies show that one out of every four Americans do not live to the age of 65. With that in mind, an obvious question arises: “How will you leave your family – with plenty of assets or with lots of debt?” I have personally delivered checks to the survivors of those who have passed away prematurely. It's a humbling thing to do.

Some people have said to me, “I don't want to profit from another person's death.” Believe me, no one I know has ever had that experience. Money doesn't replace anyone. Money simply gives choices to those who survive.

Q: How much life insurance should I get?

The cost of insurance varies from family to family, so there is no one answer to that question. However, you can determine a good baseline by doing the following:

  1. Determine how much income a family would need upon the death of a breadwinner.
  2. Use a 5% factor for the calculation.

Here's an example: $1,000,000 of life insurance at 5% after taxes would generate $50,000 of annual income to a surviving family until over time, due to inflation, the original $1,000,000 would become depleted.  Using the same formula, $2,000,000 of life insurance at 5% would generate $100,000 of annual income.

Q: What kind of life insurance should I buy?

The proper type of life insurance to purchase varies from situation to situation. A level term policy is a good starting point for many families because it's simpler than other policies. It's not so much the kind of life insurance as the amount of coverage that matters. I have never delivered a check to a survivor and been asked “What kind of life insurance did he have?” I'm asked “How big is the check? How much will we have to live on?”

All this information can seem intimidating? It doesn't have to be. Please give me a call; I'd be happy to discuss your specific situation with you and give you some things to think about.

Since the best policy to buy will vary depending on your situation, you should schedule an appointment with to determine which policy would best suit you. Please do not hesitate to give me a call at 303-979-8384.