Life Insurance Awareness Month
Life Insurance Awareness Month (September) is coming to an end. According to LIMRA, the Life Insurance Marketing and Research Association, only 54% of U.S. adults have life insurance. Now is a great time to review how you have invested in the safety and security of your family’s financial future through a properly structured insurance plan.
Start out by identifying any employer-sponsored benefits that you may have. Your Human Resources Department should be able to give you an annual summary of the benefits that identifies your coverage and what premiums, if any, you are responsible to pay. Confirm that the beneficiary designations are up to date, and that the amount of coverage provides a sufficient financial safety net if you were to die unexpectedly.
How much insurance you need varies by your own financial situation, but a good rule of thumb is 10 to 20 times your annual income. Sometimes buying supplemental coverage through your employer’s plan may make sense, especially if you have underwriting challenges. Other times it costs less to purchase an individually owned policy that you can maintain even if your work situation changes.
You should also confirm what disability income benefits you have through your employer-sponsored plan. If you are unable to work because of an injury or illness, the disability income insurance can provide income to pay your bills and support your household. Make certain you understand the elimination period, the monthly benefit amount, the benefit period, and taxation of the benefits so you do not run into any unexpected and unpleasant surprises if you receive benefits. Also confirm whether the benefits would be reduced by any Social Security Disability Benefits you receive.
Whether or not you need individually owned life or disability income insurance really depends upon the details of your personal situation. It is important that you have a trusted team of professionals to help you understand the right type and amount of insurance needed to secure your family’s financial future if something happens to you.
Feel free to give me (Diane Gastrow) a call at Ellenbecker Investment Group, 262-691-3200, if you have questions relating to your life, disability income and long-term care insurance plans. I am available to help you understand your insurance needs, the coverage you have, and what changes, if any, would make sense for you at this time in your life.