How I paid for my life insurance!

Posted on by Matthew Laker

How did I pay for my life insurance?

The first step was to learn about life insurance and the different parts of it. Second, I did a financial analyst of where I was at with the help of someone, and this provided the opportunity to see how much life insurance I need. No need to pay for more then you need.

Through this learning process about life insurance, I soon realized it is better to set up life insurance at a younger age. I bet we all wish we could go back with some truths for our younger self.

Anyway, how did I pay for my life insurance? In my review, I found two products I was paying.

The first was credit insurance on my mortgage. If I died, this would kick in and pay off my mortgage. Great idea, but there is a better way. The second was insurance through my credit card that also paid off the balance in death and a little accident insurance. The cost of this would change each month based upon how much was on the credit card.

So looking at these two products, the combined cost would pay for my life insurance. What that means is month to month; my living cost did not change. I would get life insurance, which was a better option then what I was paying before.

Life insurance gives my family control of how the money will be used, which is important to me. The option I was giving up meant it just covered some debt and went straight to the creditor. Life insurance provides income protection and debt coverage, and my family benefits and gets control.

Now perhaps this is not an option for you. However, let’s do a finical review and see what kind of solutions we can provide for you?

If I can find a solution that is affordable and provides for your family, are you interested?

Yes let get a Financial Analysis –

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Understanding Term Life Insurance

Understanding Term Life Insurance

Posted on by Matthew Laker

You have people who depended upon you, and life insurance is about providing a safety net for them if something should happen to you.

Simply put, you pay a monthly premium for a set amount of death benefit. 

TERM INSURANCE IS DESIGNED FOR PEOPLE WHO

  • Require the coverage for only a specific period of time. For example: to pay off a mortgage or replace a spouse’s income.
  • Have a limited budget and a high need for insurance.
  • Have young children.
  • Have a large amount of debt.

PROBLEMS THAT TERM LIFE INSURANCE CAN SOLVE

  • Providing money for unexpected expenses after the passing of a loved one.
  • Ability to care for loved ones when unfortunate life events occur.
  • Assistance in replacing the loss of income in the event of a death.
  • Assistance in covering costs of funeral arrangements.
  • It can also cover the educational needs of the children.
  • It can help pay off the mortgage and/or other debts.

  If the death benefit need to be paid out, this will be tax-free to the listed beneficiary.

Next Steps 

1)Write out the questions you still have?

2)Set up a time to get your questions answered? 

Day/Month/year
Types of Permanent Insurance

Types of Permanent Insurance

Posted on by Matthew Laker

If you have dependents in your life, that could be ageing parents or children, or someone else. Life insurance is a great way to ensure care for them if something should happen to you. 

Permanent insurance does not need to be renewed and covers risk for your whole lifetime. 

  1. Whole life 

Coverage for your entire lifetime. Over time a cash surrender value builds up. Your death benefit is guaranteed. The premiums are based on assumptions about cost over the long term. 

  • What is the cash surrender value. ?

The cash surrender value (CSV) is a saving account that builds up over time. However, upon death, the beneficiary only receives the death benefit, and the insurance company keeps the cash surrender value. If you surrender the contract, you will receive the CSV.

2.Term-100

It provides coverage for the entire lifetime of life, and it matures at age 100. At 100, premiums are no longer payable. If you live longer then 100 it still covers you. Usually, they do not have a CSV. 

3.Universal life

Provides coverage for the entire lifetime of the insured. The uniqueness of UL is there is a savings component. One can use this to accumulate savings in a tax-free account. 

Permanent insurance is designed for people who

  • Have a permanent need
  • Need estate and tax planning

Are you looking to get life insurance or

review your current situation?

Yes 

No

What questions do you have?

Let’s start with a free financial analyst and find a unique solution for you. 

How much life insurance do I need?

How much life insurance do I need?

Posted on by Matthew Laker

How much life insurance do I need?

A simple way to start to figure out how much life insurance you need is a Dime calculator.

Debt and final expenses – Add up your debts outside of your mortgage and estimate your funeral expenses.

Income – Take what you earn and multiply it by the number of years you need to support your family.  For example, if you are 40 and you have 20 years of working left.  

Mortgage – What is the amount you need to still pay off on your mortgage. 

Education – Do you plan on helping your kids to college, what will that cost?  How much do you want to help with?

I would recommend that instead of just planning for life insurance, consider an overall financial plan.  

There are other things to consider, as well regarding retirement and current and future investments.

Getting an understanding of this was important as I looked to provide for my family. 

A great place to start is getting your budget in order.

Try this free budget tool to help track and plan your budget. 

I’ve Been thinking about life insurance

I’ve Been thinking about life insurance

Posted on by Matthew Laker

We are a one-income family. Now I have struggled with that reality for some time. Not because I think my wife should work. No, we decided a long time ago that she would stay home to invest in our kids, and I would work. It was an excellent choice for us; perhaps it is different for you.  

However, two things I have struggled with through the years.  

One, can we generate additional income sources in our life. So, on top of doing some personal life coaching for people. At the moment of writing this, I am also developing another small business option around helping people master their money(Investment, insurance, debt reduction, financial Education, etc. – want to learn more? Let me know or looking for help )  

Two, I have wondered what would happen if I would die or get seriously injured, what would my family do?

We have worked hard to have no debt in our life and keep reasonable control of our budget. But death is a massive disruption to life.  

In one of my roles as a pastor, I have buried enough people to know the cost around the time of death, can be a burden for families.  

So I am on a journey, learning about life insurance and investments and how it can help.  

Life insurance is about trying to manage the potential of disruption and the financial impact upon my family. As a Dad, it is about taking responsibility for my family. My young family and wife depend upon my income.  

As I look at financial planning in my life, I am coming to see this as a foundation for caring for my family. 

What about you, how have you developed or planned for the risk of and reality of death?

What questions do you have about life insurance? Have you found a better option than life insurance?