How Much Insurance Do I Need?

Lately, I have been having conversations with families about this question:

"How much insurance do we need?"
Well, usually the rule of thumb is 15-30 times your annual salary...
depending on age, etc....let me explain:
The correct answer is c) 100% of it's replacement value.
Insurance companies will always try to sell you LESS insurance than what your valuables are worth (whether it's your house, your car, or your life) because they don't want to be on the hook for the entire replacement cost of of your valuables...
...especially if it's a persons economic human life value!!!
So, when it comes to the lives of your loved ones (especially breadwinners), you should always shoot to obtain insurance protection equal to 100% of that persons "Human Life Value"...
...AND NO LESS!!!
Remember the homeowner example:
If your house was worth $200,000 before it burned down and you had insurance coverage of 50% of it's value, would you be able to pay off your mortgage and have a roof over your head?

The same is true with people, especially the breadwinner(s) in a family. Just like the house that burned down, the breadwinner(s) will die some day...it is inevitable.
There are many online calculators you can use, but here is a good one from The Life Foundation:
Human Life Value Calculator

Try it out...find out how much insurance you need...then get a quote from www.beaconbeneficial.com

Please do this...visit www.beaconbeneficial.com

The Fatherless and Widows

On the 4th of July, my friend Wes Truman, finished his 5 year fight with cancer.

He died at age 30...unbelievably sad.
He and his family are full of hope and faith and they are examples of righteous living.
My heart is heavy for his sweet wife and two small children. They will miss him the most.
Lately my personal scripture study has revolved around this verse in the New Testament:

James 1:27
"Pure religion...is this, To visit the fatherless and widows in their affliction..."

I hope my new career in life insurance helps me live "pure religion".
Please visit www.beaconbeneficial.com

Example: The D'Klient Family

Val U. D'Klient is a 35 year old Manager for the Boeing Company. He lives in Utah and makes $65,000 a year. Val and his wife Betsy have 2 children ages 4 and 2.

After using the human life value calculator, Val discovers that he needs to have insurance protection for at least $1.5 M. As responsible folks the D'Klients have decided to commit 5% of their income toward insurance premiums...about $3,500 per year or $300 per month.

Val gets a quote for Term Life Insurance at www.beaconbeneficial.com and is really excited to find out that he can get his required $1.5 M policy for only $101.76 a month!

Now if you listen to Dave Ramsey, you are supposed to take your budgeted $300, buy a 30-year Term Insurance policy for $100 and invest the other $200. But there are two problems:

1. What is Val going to do about life insurance after 30 years when his term is over? Val will be 65 years old and trying to buy a new policy...not a good position?
2. What is Val going to invest that other $200 a month in? He might be tempted to spend it instead.

The best solution for their family is to "blend" a mix of

Term and Whole Life coverage.

Val was smart and decided to blend his coverage by using his $300/month to buy Term and Whole Life coverage equal to the $1.5 M that he needed.

Now why is Whole Life a good idea? Here's why: IT'S PERMANENT!!!

Don't get me wrong, I love Term Life Insurance and it is a must!

But, you have to die for any of your premium dollars to be worth anything.

What happens if you out-live your 30-year term policy and reach age 65 (which I hope you do)...you get nothing except a lot older and become less qualified for a new life insurance policy.

By contrast, here is what Whole Life (Permanent) Insurance will do:

Click on the image to make it readable

Notice how...

all the numbers you want to go up, go up

and

all the numbers you want to go down, go down!

The benefits of Whole Life Insurance:

• It has a savings element which accumulates cash value and grows tax-deferred
• It might build up enough cash value to stop paying premiums by a certain age
• You can give yourself a loan from your cash value (which you don't have to pay back) on a tax-advantaged basis. (Val could take out $54,000 CASH when his kids go to college, or $113,000 CASH when he retires, etc., etc.)
• The premiums will never increase...it's permanent and guaranteed
• If you out-live your policy (say age 100) your insurance company brings you a check for the death benefit...even though you are not dead! (In Val's case his death benefit has increased to $610,000...more than his $585,000 cash loan he could give himself!)

Bottom line:

You need some Whole Life Insurance

to go along with your Term Insurance.

Sally O'Malley is 50 and she promotes life insurance

Sally O'Malley is a classic character from a Saturday Night Live skit, played by Molly Shannon.
She is usually a "fall-down-funny" type, but has some genuine feelings about Life Insurance.
Check it out...

Beacon Beneficial

A Secure Family is a Nation's Strength

"A Secure Family is a Nation's Strength"

A nice quote from Garry L. Johnson & Associates...but seriously think about it.

Beacon Beneficial

LIMRA Report - Households at Risk

According to LIMRA's 2010 Life Insurance Ownership Study,
"30% of U.S. households (35 million) have no life insurance protection at all."

Breadwinners...take some action.

What is Term Life Insurance

Here are the companies that Beacon Beneficial will be placing policies for Term Life Insurance.

New Term Life Insurance Portal

It is now up and running.
Please check out the new Term Life Insurance Portal.
www.beaconbeneficial.com

Welcome to Beacon Beneficial

I'm am pleased to announce the start of Beacon Beneficial...my life insurance company.

I'll be launching the official Insurance Portal in the next few days where you can purchase Term Life Insurance. Stay tuned.

www.beaconbeneficial.com