How much life insurance do I need?
What kind of insurance should I buy--term or permanent?
I have life insurance coverage. Should I consider replacing it with a newer policy?
Can my property/casualty agent sell my family life insurance?
What's the independent agent difference?
How much life insurance do I need?
Only you can really determine how much life insurance is exactly right for you based on your particular needs. Here are a few simple methods you can use to estimate your need for coverage:
Add all your debt, final expenses, educational expenses to come, retirement income and survivor income needed, and then subtract any existing life insurance.
Figure the annual income you will need and divide it by a conservative interest rate (i.e. 3 percent or 4 percent). For example, suppose your desired annual income is $20,000. Assuming an interest rate of 4 percent, you would need $500,000 of coverage.
Use a multiple of your income (i.e. six to 10 times your annual gross income). This will allow your beneficiary sufficient time to become established financially.
What kind of insurance should I buy--term or permanent?
Term insurance is pure life insurance protection and is less costly in the short run. It is designed more for temporary needs (i.e. mortgage protection, college education, etc.) Permanent coverage includes a living benefit, cash value growth, which can be borrowed or surrendered should the need arise*. It costs more than term insurance in the early years, but it provides coverage for life.
* Check with your financial advisor for tax ramifications.
I have life insurance coverage. Should I consider replacing it with a newer policy?
You should carefully consider whether a replacement is in your best interests. You will pay acquisition costs and there may be surrender costs deducted from your policy or contract. You also may be able to make changes to your existing policy to meet your insurance needs at lower costs. Carefully compare the costs and benefits of your existing policy and a new proposed policy. You also may need a medical exam for the proposed policy. An agent should be able to provide you with more information to help you decide.
Can my property/casualty agent sell my family life insurance?
Many property/casualty agents are licensed to sell life insurance. Next time you meet with your property/casualty insurance agent, be sure to ask about life insurance.
What's the independent agent difference?
The companies of The Motorists Insurance Group are united around the common belief that policyholders are served best by independent agents who live and work in the communities where they do business.
We rely on these professionals because they understand your insurance needs and are in the best position to help you make an informed decision about which insurance coverages are best for your unique situation.
As a policyholder, you can have confidence that when your independent agent recommends Motorists Life Insurance Company for your life insurance needs, you're getting the best quality coverage for your money backed by a financially sound company built on topnotch service.
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