Life Insurance: It’s for the people who live

Are you worried about how your loved ones will pay the expenses incurred at the

time of your death? While death is an inevitable part of life, financial questions associated with final medical bills, funeral expenses and estate settlements should not be.

According to a 2006 General Price List survey of the National Funeral Directors Association, the average cost for final expenses is about $7,000. Preparing for those costs today could prevent family members from dealing with a financial burden later, at a time they are already coping with the loss of a loved one. One way you can assure that your final expenses are covered without placing the responsibility on your family is to make certain you have a life insurance policy that will meet your needs. Your life insurance policy can be an important part of your financial planning. Taking the time now to review your coverage and benefits may give you and your loved ones the peace of mind you deserve. The death of a loved one can be enough of a physical and emotional burden for your family. By planning ahead, you can prevent it from being a financial hardship as well.

Life insurance is a practical way to protect your family’s financial hopes and dreams. The death of a family member can be devastating to survivors, both emotionally and financially. Life insurance can provide the necessary cash to help with your family’s immediate and long-term needs.

• Immediate needs include funeral expenses, unpaid medical bills and taxes.

• Long-term needs include care for a disabled child or elderly parent, and in general, the chance for members of your family to continue to live the life to which they are accustomed.

Life insurance is not for the people who die, but for people who live. It’s wise to explore options while you are still healthy; health problems can make life insurance expensive or unavailable. Three forms of life insurance are most common today:

Term life insurance – this is temporary life insurance for a specific time period (one, five, 10 or more years). It can provide short-term coverage on a limited budget. Term insurance, however, costs more to buy as you get older.

There are two common types of term life insurance:

• Level term: the amount of pro- tection remains the same during the coverage period.

• Decreasing term: the amount of protection gradually declines during the coverage period. Whole life insurance – premiums are generally level with cash-value growth throughout the life of the policy. Cash values can be borrowed (with interest charged) during the insured person’s lifetime to help meet temporary or emergency needs.

Funds borrowed reduce the death benefit and cash surrender value.Universal life insurance – this offers many traditional advantages of whole life insurance (such as protection for life), but also offers flexibility.Coverage amounts and premium payments are flexible to help meet changing needs during an insured person’s lifetime (subject to certain conditions).

When you buy life insurance, you buy a promise of protection against financial loss caused by death. The promise is only as good as the company that stands behind it. In today’s marketplace, life insurance buyers should be concerned about:

• The financial strength of the insurer and customer service.

This article was written by Brennan Purdy, local State Farm agent. For more specific information about life insurance or a free quote, please contact his office, which is conveniently located in downtown Bethel at (203) 798-7300.