One of the most important expenditures the average family
Makes in its lifetime is the purchase of life insurance.
What’s Its Purpose?
First, you must understand the purpose of life insurance.
It is to protect against premature death.
Life insurance does not “insure life” so much as it “protects
Your dependents” from the loss of financial support.
What Are You Paying For?
Second, you must understand what you are paying to protect.
Most people earn from $400,000 to $800,000 during their lifetime.
It is the loss of that earning potential that makes life insurance a
Necessity. Life Insurance is a substitute for the cash and other
Wealth that your family would accumulate if the breadwinner
Were living.
What Should You Buy?
Third, you must understand what kind you should buy.
In the early years you need a lot of coverage …
1. Children young.
2. High debt
3. House mortgage.
4. Loss of income would be devastating.
A 20 Year Term Policy on the breadwinner would be sufficient to cover
this scenario.
For example: For a family with two children, $100,000 + $50,000 + $50,000
equals $200,000 on the breadwinner for adequate protection
for the family.
$200,000 of life insurance would give survivors and annual
income of
$22,300 per year for 20 years (assuming that the insurance proceeds earn
10% with annual compounding interest and that income is payable in monthly installments.)
In the later years you don’t need a lot of coverage …
1. Children grown.
2. Low debts.
3. Mortgage paid.
4. Retirement income needed.
We recommend a Whole Life Policy in this scenario.
For example: $10,000 Natural Death
$10,000 Accidental Death
This would presently cover basic final expenses.
- Art Williams
Edited by Hayden Childs, Agent
(205) 269-1382
Offering …
Whole Life, Term Life, Accidental Death,
Critical Illness (cancer, heart attack, stroke)
Renter’s (contents) Insurance.
The Grief is bad enough,
Don’t Leave the Burden
To Your Family!
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