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What is the primary reason for owning life insurance?
The #1 reason
for individuals or families to purchase life insurance is to provide a
death benefit to help replace lost income and protect loved ones from any
financial loses that could result from the insured's death.
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How much life insurance do I need?
The amount of life insurance that is
appropriate for you depends on your needs, the circumstances in your life,
and any future financial objectives you are trying to achieve. A
basic starting figure can be calculated by using the "simple method."
Total death benefit from all sources should equal between five to
ten times your gross annual salary. Contact us for a complete
"capital method" evaluation and a better estimate of how much you
really need to achieve all your goals and which plan would be best for
yourself and your family.
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How do I choose between permanent and term insurance?
The best policy will depend on your goals and budget.
To answer this question, ask yourself if your current life
insurance needs are permanent or temporary. Consider your
budget to determine which premium is affordable. Permanent
insurance may have the lowest premiums in the long term, but if
your needs are short term, temporary insurance might meet these
needs better.
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What payment modes are
available for me to best fit my budget?
Payments may be made on a monthly, quarterly, semi-annual, or annual
basis. Annual payments on most plans offer an 8% to 9% reduction in
premium. The American Fraternal Union also offers the convenience to
policyholders by paying monthly premiums through Electronic Fund Transfer
(EFT).
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How do I choose a beneficiary?
It may seem simple--choose those closest to you.
Actually, there is more to it than that. When you
name a beneficiary, the death benefit payment will go
directly to that person and does not have to go through
your estate. This will avoid probate or federal
estate payments. But if you name your estate as
the beneficiary, the death benefit will become part of
your estate. A few things to keep in mind about
specifying a beneficiary are to make sure you spell
things out clearly and remember to update your
beneficiary designations when life changing conditions
in your life occur such as marriage, birth of children,
or possibly divorce.
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Should I replace one insurance policy with another?
If you have existing insurance coverage with
the American Fraternal Union, remember these points if
you are considering dropping one policy for another.
It may be very costly to replace your policy. If
you are older or your health has changed, premiums for a
new policy will probably be higher or you may be
currently uninsurable. Ask your tax advisor if
dropping your policy could affect your income taxes.
Protecting you and your assets should be your #1
concern, not just a possible lower premium. |
