It is important to compare life insurance policies to make sure that
you have the adequate protection that you think you do.
Whether you consider yourself middle class, were born into a lifestyle of wealth or are in the process of building and accumulating your wealth or you are one of the affluent elite, you may not fully understand the biggest risks to your personal and financial life. As you earn more money and start to accumulate more impressive assets over the years, your insurance needs become more specialized. A policy that was considered excellent five years ago is suddenly inadequate for your needs, but you may not realize that if you don’t have a professional reviewing your policies on a regularly basis you might be on the disadvantage. Since we live on a maze of ever changing landscape of regulatory laws and legislation, what was considered an advantage a few years ago might be considered a liability or losing position today.
Some wealthy people assume that they don’t need life insurance because they have enough money to pay for their own burial expenses plus keep their loved ones comfortable for many years. If you have ever thought in this manner, keep in mind that a lot of your wealth won’t pass to your loved ones in cash. They will receive your valuable assets, but they can’t immediately turn houses, cars, heirlooms and boats into cash to pay for a funeral.
If you have adequate life insurance, your loved ones can use that money to cover those final expenses. Not only will this make arranging your funeral easier as they grieve your loss, but it allows them to enjoy your estate fully. Instead of spending their own money or part of their inheritance on your funeral and taxes, they can save more money for use in their personal lives.
If you’re the primary breadwinner for your household, this is the best way to ensure that your family continues to enjoy their accustomed lifestyle without going into debt or forced to sell off their assets if something unexpected happens to you. No one wants to think about the end, but preparing for it is essential. To culminate we are stating that as you employ insurance strategy in your financial future you are using the power of leverage to wield a large amount of assets by paying a small premium.
There is one more thing to consider when determining how much life insurance you want to carry: taxes. Your loved ones will enjoy tax-free income when they receive payout from your life insurance policy. Depending on the dollar value of your estate, they may escape paying federal estate tax. If your value is too high for that provision and they do need to pay estate tax, they will have a generous death benefit to ensure that it isn’t a burden.
There’s no question that you need more life insurance as your wealth grows, but there are many factors to consider when determining how much insurance you actually need. You can talk to your Rebo Wealth Services consultant to analyze your lifestyle and the value of your overall estate to determine what type of policy is adequate for your needs today. Ongoing analysis of your financial life will help you adjust your policy to ensure that it keeps up with financial growth over time.
It's always best to compare policies to determine which one will deliver maximum benefits for the least investment. It’s also important to secure a policy through an insurance company accustomed to working with middle of the road investors to wealthy customers, . Once you know your options, you’re more likely to select the best policy.