When is the Right Time to Purchase Life Insurance?

Unfortunately none of us are going to get out of this life alive, and some of us will even die prematurely. That’s why it is so important to have the proper life insurance in place at the proper time in your life.College_graduate_students_620x350

Life has many transitional stages, and it’s these stages that should prompt you to step back for a moment and reflect on how your untimely death would affect those around you.

Some of these transitions in life include: graduating from high school, or college; marriage; buying a home; the arrival of children; a career change; Retirement Planning, and Final Expense Planning.

Graduating college students may need a $50,000 10 year term life policy to help cover the student loans. Especially if mom and dad cosigned the loans!

Newlywed couples buying their first home may need a $250,000 30 year term policy to cover the mortgage in case anything happens to the primary bread winner.

071The birth of your first child may be the perfect time to review life insurance options. Maybe for the first time you are now responsible for the care and protection of a dependent. A life insurance policy can give you that peace of mind of knowing that if you can’ t be there the child’s needs will still be provided for.

Couples planning for retirement may want to purchase an Indexed Universal Life Insurance Policy (IUL) because of the tax benefits that it provides. An IUL is also an excellent investment vehicle while it provides coverage for an unexpected death.

Life insurance shouldn’t be viewed as a product that you purchase once and then forget it. Different stages of your life require different types of life insurance. If you haven’t done so, call your agent today and schedule a time to review your life insurance needs. You will be glad that you did.

The Umbrella Policy

What if the unthinkable happened to you?  You were the cause of a major accident that caused death or serious injury.  Would your insurance liability coverage be enough to cover the injured parties expenses, and protect your from financial ruin?Auto%20Accident%20C

For the vast majority of people the answer is “No”, but the umbrella policy can help you change that.

The umbrella policy starts at $1,000,000 in liability coverage and it covers your excess liability over your auto and homeowners insurance limits.

This means that if you auto insurance liability limit is $250,000 per person; with the umbrella policy in place you will then have $1.25 Million in liability coverage.  If your homeowner’s liability limit is $500,000; with the umbrella policy in place you will then have $1.5 Million in liability coverage.

Do you really need that much coverage?

If you are the cause of a serious accident you will suddenly be thrust into a “perfect storm” of financial ruin.  The combination of high medical expenses, attorney’s fees, and a “sue happy” society could cost you’re your life’s savings, future earnings, and equity that you have built in your home.

How much does it cost? 

Fortunately this type of coverage it is very affordable.  It varies from person to person, but I typically see a premium range of $200 to $300 per year.  $25 per month is not a lot of money to protect everything that you’ve worked for your whole life, especially in light of how much we spend for gas, cable TV, and dining out.

Yellow HouseWho needs an Umbrella Policy?

As an agent it is vitally important that I get to know my clients as best as possible.  This helps to recognize different risks associated with their occupation, hobbies, and life style.

I recommend this coverage to all of my clients, but I strongly recommend this coverage to people who have occupations that make them more susceptible to law suits, such as people who work with children.  It is my opinion that every teacher, Sunday school teacher, bus driver, day care worker, and little league coach have the umbrella policy as part of their insurance portfolio.Brian Bragg compressed

I also strongly recommend this coverage to people that have money that they want to protect.  Equity in homes, savings accounts, retirement accounts, future earnings, and other assets are all at risk when there is a serious accident.

For more information on the umbrella policy or to review your coverages, contact Bragg Insurance Agency.