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Five Biggest Mistakes Families Make with Life Insurance

sponsored by Midland National The month of September is Life Insurance Awareness Month.  While it’s still a few months away, it’s not too early to start protecting yourself today. Most families are getting tons of information thrown at them around the topic of investing, far too often I see families make major mistakes when it comes to life insurance.   I had a widow come to see me just a few months ago when her husband had a tragic accident.   He left her with three young children and a $500,000 insurance policy.   With hardly any other saved money, she was left bewildered on how she would be able to make her bills, pay for her kids’ college education, and then also take care of her retirement.   While $500,000 seemed like a lot money at the time they applied for the insurance, in reality it was barely enough to get by given all of the family goals.  Here are the five biggest ...

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What Does It Mean To Have “Conditional Receipt” When You Apply For Life Insurance?

sponsored by Midland National It’s never fun having a discussion as a family or with a financial professional to figure out how much life insurance you need.   Most people dread this conversation as much as going to buy a new car because you are going to always feel like the insurance agents are ready to pounce on making a sale.  As long as I’ve been doing this, I have still yet to hear a surviving spouse tell me that they bought too much life insurance. In many married couples, it is still usually one spouse who drives the conversation about how much life insurance the family needs.  Usually it is the major breadwinner of the family.   Recently, I heard yet again another sad story from a surviving spouse whose husband passed away way before his time.  When I learned a little more about the situation, she revealed that he had been approved for a large sum of life insurance a ...

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Personal Finance 101 – Your Benefits Package At Work: Life Insurance

One of the most overlooked parts of an overall financial plan is the benefits package you receive from your employer.   Two weeks ago we talked about health insurance and the decisions that you should be thinking about within your overall benefits package.   Life insurance is an election that you will have to make every year within your employer’s benefits plan.   I have found that often people don’t ask themselves the tough questions when it comes to this election, nor do they understand what the coverage will take care of in the event of a premature death in the family. Remember, that your overall life insurance election will generally include individual group life insurance, spouse/partner life insurance, children life insurance, accidental death and dismemberment insurance, and sometimes a group universal life insurance option.   Understanding the nature of what these cover and their overall portability are a critical part of making sound financial decisions. How does my group term life insurance work? ...

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Life Insurance For My Children?

Someone asked me the other day, “Ted, is it morbid to ask you whether I should buy life insurance on my children?”   It was an interesting question, and one we often get from parents.   The American Council of Life Insurers says that only about 15% of the people under the age of 18 have life insurance.  An average policy for people under 18 is around $5,000 with the primary purpose to cover funeral expenses and burial costs.  There are varying schools of thought on this subject in the financial community, and here are some considerations to think about around this subject. Remember that you as the parent are the real wage earner and the person that needs to be insured the most.   It is not recommended to buy life insurance on your children until you are adequately insured.   Since children for the large part don’t earn wages, any additional cost will be an extraneous expense to your budget. On the ...

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