New Baby, New House, New Marriage? It’s the Perfect Time for an Insurance Needs Analysis!
Life events often cause us to think carefully about how to protect what matters most to us. There isn’t a one-size-fits-all solution to address the needs that arise as our lives change. That’s why we recommend taking the time to work through a ‘needs analysis’ that will help you develop a plan that meets your long-term financial objectives and addresses your life insurance needs.
A needs analysis consist of questions about your personal situation and goals to help you assess your insurance needs. For Example:
- Your risk profile. Based on your income coming in, expenses going out, and savings, do you have risks that would be difficult or impossible for you to cope with financially? These risks could include death, a serious injury or sickness, a car crash or home fire.
- Your safety net. Are you likely to be able to improve your financial situation by paying down debt, changing your spending habits or increasing your emergency cash fund? Are you single, divorced or married? Double income or single income? How stable is your employment situation? Do you have life insurance through work?
- Your wants. What are your dreams? A second house, a round-the-world trip, starting a business?
- Your needs. What are your needs over the next few years and in the long term? Do you want to fund college, vacations and/or retirement? Is it important for you to provide for elderly parents or leave a legacy to your adult children?
The answers to these questions can help you determine whether you need life insurance – or more life insurance – as well as what type and how much to buy. Life insurance can help you meet your financial needs in four ways:
- Immediate expenses. The insurance’s death benefit can help cover unpaid medical bills and funeral expenses.
- Ongoing needs. Life insurance can help replace your income, pay off the car, and enable your family to make the mortgage or rent payments if you pass away.
- Future big expenses. Life insurance may help cover the future cost of a child’s college tuition, or fund day-to-day living expenses for your children or parents.
- Your overall financial situation. Some life insurance products are employed as part of an estate plan, as a source of retirement income or to pay estate taxes.
Life is full of uncertainty. Protect the people whom matter most in our lives!
For more information on scheduling a needs analysis please feel free to contact our agency.