*Please read the Term Life and Permanent Life tabs to the left to get a better understanding of this page.

Personal Life Insurance is any life insurance used to compensate a persons closest relations in the event that something happens to them.  The amount and type of insurance is related to your particular situation.  Typical concerns are income replacement, debts and unpaid liabilities, education expenses, child care replacement costs, funeral costs, alimony and child support payments due, estate taxes, and a host of other concerns.  Following the September 11th attacks, the Victim Compensation Fund valued the future earning potential of victims at nearly 16 times their income.  A good rule of thumb has always been 5 to 10 times your annual income.  When calculating your salary also take into account that a life insurance death benefit is typically going to be free from taxes.

Most families are underinsured according to a recent survey by Allstate.  This is unfortunate because life insurance coverage is usually well within most household budgets if structured properly and health is not a major concern.  A proper needs analysis will create the most accurate estimate of a persons needs.

We like to conduct annual reviews to make sure that a client's current life insurance needs are being met.  Over time as a person's life changes so does the amount and type of coverage needed.  When a person is just starting out they might have small debts, small salary, no kids, and therefore a small need for life insurance coverage.  As they progress into a better job, get married, have kids, buy a house, their need for coverage increases and this might be a good time to consider getting part of their coverage in the form of permanent insurance that builds cash value.  As the kids move out and their salary continually grows this is a time to maintain a fairly high level of coverage.  Also, during this time they should consider how much life insurance they would like to carry into retirement and how much they will drop upon retirement.  The amount that needs to be kept in retirement should be converted to a Guaranteed UL as soon as possible.  The amount converted should be enough to cover remaining debt and burial expenses.  Another concern of some families is maximizing inheritance without incurring more taxes. Please read the Estate Planning tab to the left for more on this topic.

Proper life insurance planning is a major part of a financial portfolio.