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IPS / Lighthouse Insurance Group Blog: michigan life insurance

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image of family outdoorsMany people are familiar with the benefits of having life insurance, a policy that can help financially protect your family when you are no longer around. Unfortunately, even those who understand the need for insurance often lack information about the type of insurance that is best for them.

Term life insurance offers many of the financial protections that a typical whole life insurance policy provides you. In fact, term life insurance is quite attractive to many people, offering them:

  • Larger death benefits for less
  • The option to convert to whole life later
  • Simple insurance terms

For many people, term life insurance is a favorite option. If you are considering purchasing a policy, consider the following key factors that may affect the policy you need.

Purchase Term Life Insurance to Pay off a Loan

Although many people don’t like to talk about it, insurance offers families a means to pay their expenses after losing the income of the policyholder. Without life insurance, many families could possibly lose their homes and/or cars, making life harder for them.

If you have a mortgage or a car payment, you can purchase term life insurance to help your family cover the costs after you are no longer with them. Many families add a term life insurance policy to their financial strategy to ensure that their surviving spouse and children can maintain their existing lifestyle.

Secure a Term Life Insurance Policy While You Are Young

With life insurance, purchasing a policy while you are younger nearly guarantees that you could pay less for your policy than you would after you get a little older. In fact, securing a term life insurance policy while you are young helps you lock in lower rates for years. Some insurers may offer you reduced rates for the duration of the policy. Compared to other types of insurance, lower premium payments make term life insurance a budget-friendly option for younger individuals who may have a tighter budget.

Buy Term Life Insurance to Complement Whole Life Insurance

Whole life insurance can easily get expensive, but it’s important to ensure that you have enough life insurance to help protect your family if they couldn’t rely on your income due to death. Fortunately, you can create a life insurance strategy that incorporates both whole and term life insurance. For instance, if you can’t afford whole life insurance at the amount that works for your family, you can purchase some whole and some term coverage until you have the level of insurance you need to protect your family.

If you decide to mix and match your insurance, you should speak with a licensed insurance agent to ensure that you have made a thorough assessment of your financial situation.

We’ll help you get the right coverage. Call Insurance Planning Service at (734) 421-9900 for more information on Michigan life insurance.


image of family enjoying the parkMost people don’t think about buying life insurance when they are young, healthy and single. However, if something should happen to you unexpectedly, a life insurance policy could pay for your student loans or other large outstanding debts, as well as your funeral expenses. These are never fun things to think about, but evaluating risks is a first step to preparedness.

Another good reason to consider buying life insurance at a younger age is to lock in rates. The affordability of life insurance is based largely on your age and risk factors, and life insurance for adults becomes increasingly expensive. While you are young and healthy, you will pay lower premiums. With short term insurance you can choose a lock-in term, such as 15 or 20 years at a preferred rate.

It is important to know that many term policies can be converted into permanent policies later on, without having to re-qualify. If you develop a severe or chronic condition at any point, your life insurance is already secured. Essentially you can insure your insurability.

There are many types of life insurance.  Call Insurance Planning Service at 800-220-5582 or contact us online today.  We can help you sort through the options and choose the plan that best suits your needs.

Source:  TrustedChoice.com

image of the word life written on beach sandLife insurance is a phrase that is tossed around and a product that is often purchased without a clear understanding of what it means. For many people, the Michigan life insurance policies they hold are not going to last them long enough to pay off. For this reason, it is important to understand the different policies, what they mean and why it is so important to shop now instead of later.

Term life insurance policies only last for a specified period of time. The benefits expire when that period ends, and any money placed into them is wasted. These policies tend to be bought more often because they are less expensive, but consumers are saving money on a less effective policy. In essence, they’re saying they must die before the policy ends. No one wants to feel that way.

Whole life insurance policies last from the moment of purchase until the death of the insured, no matter what. These are more expensive because their coverage might last many years or even decades. This type of policy is less common than term life due to its expense, but is beneficial in many ways. Once owned, whole life policies are less stressful, as the insured knows that their plan will cover them in the event of their death. Also, whole life insurance policies can be borrowed against (albeit at high interest rates) in case of an emergency.

Many policies are woefully underfunded. Ask yourself: what is your plan? $100,000? $150,000? The average consumer holds around $50,000 in debt, and the average funeral cost is between $10,000 and $15,000. When you consider that it takes around two to three years of financial readjustment for the surviving spouse with an average household income of $32,000, then you are looking at $161,000 already, and that doesn’t include additional expenses. Keep in mind that you want to leave enough for your spouse to live on until they adjust. Would you like to leave enough behind to help put your kids through college? To pay for your daughter’s wedding? These questions are important to ask yourself.

Life insurance costs are based on age and health at the moment of purchase, so your health in the past or the future is irrelevant. Buy now, before costs rise. A healthy 40-year-old man might pay between $300 and $500 a year for life insurance for a $500,000 policy. However, those costs double and quadruple over the next 20 years for the same cost. If purchased at an even younger age, like the 20s, a plan could pay out well over $1,000,000 at a low cost per year over a lifetime.

Call Insurance Planning Service at 800-220-5582 today for more information about purchasing a life insurance policy.


A quick glance at how women have been portrayed on TV in the past 50 years reveals a significant change in their roles and identities. From Barbara Billingsley, the pearl-and-white-gloved mother on “Leave It to Beaver” to Linda Lavin and Mary Tyler Moore (just to name two) portraying career women to today’s crop of actresses playing everything from an ex-IRA operative (Gabrielle Anwar in “Burn Notice”) to a police detective and medical examiner duo (Angie Harmon and Sasha Alexander in “Rizzoli & Isles”), the message is that women have stepped far beyond their homemaker roles.

And in many cases, due to choice or circumstances, they are making their life journey without a partner—about 51%, according to some studies. There are almost 15 million households led by single women in the United States, and close to three-fifths have children under 18. Independent? Yes. But with that independence comes an increased need to plan for life events that are challenging enough with a partner but can be overwhelming when faced alone.

Life and Long-Term Care Insurance

While life insurance is critical for single mothers who might otherwise leave their children without financial resources, even those women without children should consider some type of life insurance—either term or permanent. Depending on the type and benefits, life insurance can replace the financial support that may have been provided to other family members (an aging parent or disabled sibling, for example) or pay off any of her remaining debts after she dies. While the policy cost will be affected by the type and benefit amount, it’s interesting to note that most consumers assume the price of life insurance to be far higher than reality.

Long-term care is an expensive proposition. According to the Genworth 2012 Cost of Care Survey, rates start at $18/hour for in-home basic homemaker services and increase to $3,300/month for assisted living to more than double that for a private room in a nursing home. And it’s not just the elderly (those 75 and older) that may need it. According to the American Association for Long-Term Care Insurance, 37% of those who require some form of long-term care are 64 or younger.

Even if family members are available to help provide care, the cost can still be significant. According to the Genworth’s “Beyond Dollars” report, the average that recipients pay for out-of-pocket expenses (not including the cost of facility care) can reach $14,000/year, while family members spend another $8,000/year. Long-term care insurance can help defray the expense, and, for those single women without family members to call on, it can help relieve the worries of what will happen if they are no longer able to care for themselves due to accident or illness.

Disability

The statistics are sobering: The average age of disabled-worker beneficiaries was 53 in 2010, and almost a quarter of people would have financial trouble immediately if they couldn’t work and earn a paycheck, while half would have trouble in just a month, according to a LIFE Foundation survey.

For women on their own, the impact of even a short-term disability could be devastating. Unable to rely on their partner to provide an income, they could find their savings depleted and their future (and that of any dependents who rely on them) in jeopardy. Given that the majority of accidents are not work-related, women need to take proactive measures such as purchasing disability insurance to protect themselves, their assets and their future.

Retirement

Retirement used to be called “the golden years” but with the increase in health-care costs and the decrease in value of most investments, the “gold” is more than a little tarnished, and women especially are worried about what the future might hold. According to the 2010 Wells Fargo Retirement Fitness Survey, about 40% of women have less access to defined benefit plans, while 58% worry that they haven’t saved enough for their retirement. As for relying on Social Security, 30% of women plan to wait until age 66 or older to apply. Compared with their male counterparts, they have far less confidence in the stock market, or, for that matter, their own ability to save enough to make the years ahead appear anything less than challenging.

For single women, it can be even more difficult, since they may only have their own pension, retirement funds or Social Security check to depend upon. Taking a proactive approach by meeting with a retirement planning specialist is a critical first step to planning for the years ahead.

Woman have proven themselves capable of handling a variety of life roles and responsibilities—from raising children to succeeding in the workplace. Evaluating their needs and putting key strategies in place is one more empowering step that all women—married or single, with or without dependents—need to take to secure their future.

For more information on how to secure your future, call the insurance experts at Insurance Planning Service today at 800-220-5582 or use our online contact form!

Article Source: LIFE Foundation
Photo Source: LIFE Foundation

American workers plan to keep working past Age 65. If you’re one of them, will your life insurance also continue? The recent Transamerica Retirement Survey found that a majority of workers plan to work past age 65 (56%) and a majority (54%) plan to continue working after they retire. Just 39% believe they are building a sufficient nest egg, thereby underscoring the need to redefine “retirement readiness” in a way that is better suited to these new realities.

For the past few years, the Transamerica Retirement Survey has seen an emerging trend of workers who plan to work past age 65, including some workers who do not plan to retire. This year’s survey found that these expectations are prevalent to varying degrees among workers of all age ranges, not just older workers.

If you are one of these workers, your need for insurance after 65 to replace lost income in the event of your death becomes very important. You should review your current life insurance policies to determine if they continue past age 65, and if so, for how long and at what cost. Now may be the time to replace your term insurance with permanent insurance, which will stay in-force as long as you need it at a fixed price with no future increases. You could even choose a life insurance policy that includes long-term care benefits in the event you need extended care.

The effects of the Great Recession are reflected in workers’ changing expectations of retirement. Working past age 65 is an important opportunity to help to alleviate a retirement savings shortfall. Life’s unforeseen circumstances, such as a job loss or health issues, can have a devastating impact on the best laid plans. The “what if” scenarios are critical for American workers of all age ranges to include in their long-term preparations.

Nearly one in three workers (29%) expect to financially support family members other than spouses or partners, after they retire, while 13% expect to receive financial support from family in retirement. This makes the need for insurance after age 65 even more important.

To answer your questions about your life insurance policy, get in touch with Insurance Planning Service by calling us at 800-220-5582 or using our online contact form today!

Source: LIFE Foundation


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Lighthouse Group Main Office in Grand Rapids, MI
Mailing Address | P.O. Box 530009, Livonia, MI 48153

Phone: 734.421.9900 | Toll Free: 800.220.5582 | Fax: 734.421.9911

Also serving these Detroit area communities in Michigan: Livonia, Farmington Hills, Ann Arbor, Southfield, Plymouth, Canton, Westland, Northville, Novi, Dearborn, South Lyon & Walled Lake