For many of us, unless we've combatted a serious illness or have had medical complications, the thought of dying is a far and distant thought. Absolute Integrity wants to raise awareness of the need for life insurance. It isn't a sales pitch or us trying to sell you a policy. In fact, there are options to purchase policies online (although we would recommend the value an independent agent brings to the table in providing counsel on the various different types of life insurance policies).
Life Insurance used to be called "death insurance." It actually pays the living survivors/beneficiaries in the event of the death of the insured person. For example, if you had a $500,000 life insurance policy, it's your family (or whomever you designate as beneficiary) that receives those funds upon your death.
Final expense bills add up quickly and can cost $10,000-$15,000. Additionally, if an income-earner dies, especially in a family with children, the loss of that income can be devastating to that family. Our firm generally recommends that you carry 8 to 10 times your annual income in life insurance. This ensures that your income is replaced, giving your family time to grieve without the stress of bills, debts, house payments, etc.
There are cases where you may want to consider an even greater amount of insurance. For example, if your intention was to build your savings to pay for children's college education, if you died, you'd no longer be able to save for this goal. To ensure that your goal is still met, you may consider an additional amount of insurance, potentially over and above that 8-10 times income suggestion.
We generally recommend a good 20 or 30 Year Term Policy (although needs can vary depending upon your individual situation). A term policy doesn't provide coverage for your entire life. However, it provides coverage for when you need it most. During those 20-30 years, if you are following a solid financial plan and building your retirement accounts, paying off debts and house, and saving for your kid's education funds, after those 20-30 years are over, you'll have much less of a need for life insurance than you do now. Supplementing your financial plan with term life insurance, ensures that if you died BEFORE all of those savings goals are met, that your family can still accomplish those financial goals that you had in place (in addition to not being completely strapped for cash for necessary living expenses after you died).
Life Insurance is easily obtainable for healthy individuals (and likely obtainable, sometimes with additional questions, for those with moderate to less severe medical conditions). Life Insurance is priced based upon age, so NOW is always the best time to buy life insurance, or fill in any gaps with additional coverage. I don't think any of us are getting any younger, so now is the time to consider your life insurance needs.