It's All Your Business: How Much Life Insurance? (Professional Resources)

Article excerpt

Since recently being (re)married and being "40 something in age, my husband and I decided it was time to discuss our overall financial plan. Having grown children, teenage children and aging parents, we were led down many different paths for our obtainable financial plan; however, we kept returning to the same question: How much life insurance do we really need? "It was like going to the pharmacy before you've figured out what your disease is," according to Bruce Bare, Jr., the past president of the Society of Financial Service Professionals. You also may have had a life-changing event, but as a busy music professional, you may not have time to review a financial plan, let alone different types of life insurance coverage. Even if you have not had a life-changing event, most people do not recognize how much life insurance fits into their overall financial plan or how their life insurance needs change throughout the various stages of life.

Most people only think of life insurance after experiencing the loss of a loved one. Of course, it is less emotional to discuss life insurance at another time, and that is why it's so important to discuss this information with someone who truly is experienced in this area. Education is a major key in this process, and comparing coverage, as well as price, is very important. No one likes to discuss this issue at anytime in their life, but to bring peace of mind to your family, now may be the best time for a discussion.

Another component of the overall financial plan is the Long Term Care placement for aging parents or even yourself. On average, women live longer than men, so they're more likely to require this service, and many women make up more than two-thirds of those who provide this type of care. "Care-giving has the potential to become a glass ceiling for women," says Phyllis Shelton, who wrote Long Term Care Planning Guide (Shelton Marketing Services). The Long Term Care Insurance policy is one way families can protect themselves and aging family members from financial and emotional stress.

Most experts recommend you review a Long Term Care Policy between the ages of 55 and 60. However, you should consider your family history when making this decision. When shopping for a Long Term Care plan, there are lots of variables to consider; including the benefit period, daily benefit, elimination period, inflation riders and benefit triggers. Make certain you are covered for home care, and check the policy daily maximum for this care. …