7 January 2013 0 Comments


New Year's ResolutionAs we roll into 2013 many of us will be identifying resolutions for the New Year.  What should we be doing to make us better:  Lose 20 pounds? Start that exercise program? Save for retirement? Stop smoking? Be nicer to your mother-in-law?

If you have a family—spouse or kids—who depend on the paycheck you bring home for their very livelihood, what about a resolution that your early death will not leave them destitute?  It’s so simple to pick up the phone or go to a website (try SelectQuote) and apply for the appropriate amount of term life insurance.  Until you apply for a policy you really won’t know what it will cost, but it will likely be less than what you’re currently paying for your daily Starbuck’s fix or babysitters for a couple of nights a month.

If you don’t have life insurance equal to at least 10 X your annual salary, why don’t you?  Is it because that income would really not be needed by your family in the event of your premature death?  Think about it!  I’m backing up the hearse, but get real about this!  If you’re a 35-year-old non-tobacco user in reasonably good health, here’s the approximate monthly cost you could expect as a Preferred Risk:

Age      Sex       Amount of Insurance     Term Duration                        Monthly Premium

35        M        $500,000                            20 years                                        $31.00

35        M        $500,000                            10 years                                        $19.00

35        M        $1,000,000                        20 years                                       $55.00

35        M        $1,000,000                        10 years                                       $31.00

A female of the same age and in the same Preferred category would pay a little less.  There is a lower priced premium for those in pristine health and great family history, but you could also pay more based on your history.  Tobacco users pay a lot more, but then the risk of premature death is much greater.  If you’re older the premiums will be more; if you’re younger, a little less.

Your resolution?:   Find out what it costs and then do the right thing for your family.

Have a Happy and Healthy 2013!

My resolution for 2013 is to keep good information coming to you to help with your important life insurance decisions.

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