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  • Liann Walborsky
    Liann Walborsky
    » Communications Manager, Tech CU
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    talking about life insurance

    September 12, 2013 Posted by: Liann Walborsky

    As important as it is, many people don’t really like to talk about life insurance. It’s not pleasant to think about something happening to a family member, and those making the purchase decision, won’t be around to benefit from the insurance. Still, it’s a key financial planning tool that can be crucial to a young family. Becoming a parent is the most common reason most people take out a policy, but often either depend solely on their employer-sponsored plan, or don’t take out enough to support their family for the long-term. According to LIMRA, (Life Insurance and Market Research Association):

    • 30% of all US households have no life insurance
    • 50% of households feel they need more insurance
    • The average amount of coverage ($167,000) is down $30,000 from 2004

       

    The first step is to begin a conversation with your family members, something many parents dread — saying they would rather talk about practically any other topic than that one. The experts recommend that you broach the subject by talking about life goals, a “bucket list,” travel, or how you will be paying for college. These are long-term objectives and can help guide the discussion towards financial planning.

    A main concern that tends to arise is the cost of life insurance. Around 86% of those who say they want coverage say it is too expensive to warrant the possible benefits. Much of this cost depends on when you take out the policy. For example, a 250k 20-year policy for a healthy person in their mid-30s is going to be about $200 a year, according to LIMRA.

    Most financial experts recommend taking out a policy that is 7x your annual household income — but needs can vary by family. Ultimately, there are many factors to be considered when determining a policy or a plan. It’s not a cookie cutter checklist and most people could use some guidance.

    To help you determine if your current policy properly addresses both your current and future financial goals, Tech Wealth Management is offering a complementary review. Please contact us at (800) 851-8549, or email us at invest@techcu.com to schedule an appointment today.

    Securities, insurance products and advisory services are offered through Cetera Investment Services LLC (doing insurance business in CA as CFGIS Insurance Agency), member FINRA/SIPC. Investments are: • Not FDIC/NCUSIF insured • May lose value • Not financial institution guaranteed • Not a deposit • Not insured by any federal government agency. Cetera is not affiliated with the financial institution where investment services are offered. FINRA registered office at 2010 N. 1st Street, Suite 500, San Jose, CA 95131.

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