NOTE: Austin Adler is a Financial Services Professional with MassMutual Financial Group, specializing in life and long term disability insurance. Austin takes the confusion out of insurance! He’s a good friend and someone I respect greatly. He provides some “must know” info below. Check it out, then give Austin a call at 608-828-4327 or send him a note at email@example.com!
—Randy Lenz, Broker/Owner, NextHome Metro Group
By Austin Adler, MassMutual Financial Group
Life insurance and home ownership may seem like they don’t belong on the same plate, but the reality is they go together just like peas and carrots. The truth is, when you go through the processes and commitment of buying a home, life insurance inevitably comes up as part of your asset protection. It’s not surprising for first-time home buyers to not carry any life insurance whatsoever. “Why do I need life insurance? If something happens to me I don’t really care what the next day looks like.” This statement can be frequently heard from first-timers before they settle down to buy a home.
Debt changes everything.
Every year families lose homes when the person who paid the mortgage is no longer around and life insurance is just one way to help make sure that doesn’t happen to you.
The amount of money owed on a mortgage is typically where the discussion starts when the question asked is “If you’re not able to make it home from work today, what do you want tomorrow to look like?” Taking care of one’s family… making sure the house is paid for, car payment is not a worry and that the college savings plan is funded; are the top answers I receive. This is what I call the baseline amount of coverage. To establish what the right amount of coverage is we look at the life economic value approach. This means what is needed to replace all of your lost income until typical retirement age.
Here’s an example: A client is 30 years old earning $100K per year in income. Assuming retirement age is 65, and his income stays relatively the same, he would look to replace $3.5 million of lost wages! That may seem like a big number, but if you tally up the years it demonstrates to the client how much money would be lost for his family if he’s suddenly gone. Life insurance is an extremely personal decision and I’m here to help.
An interesting point to add about life insurance. It generally costs less than you’d expect. There are several policy types available, each accomplishes very different goals. I’ve arranged plans that are $15 a month, up to $5,000. When the discussion turns to estate planning for wealthy individuals, the price of the policy is relatively low when you consider how it effects the financial plan as a whole. Your life insurance policy may then provide you with additional financial options in the future.
You’re about to take the next step in your life as a new homeowner! And working with a professional insurance expert such as myself will give you a tremendous amount of insight into the plan that’s just right for you and your changing landscape.
Contact me today for your piece of mind! Or visit my website for more information
My primary objective is to help you achieve financial freedom in a complex and constantly changing world by designing strategies to help you achieve what is most important to you.
MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. Local sales agencies are not subsidiaries of MassMutual or its affiliated companies.
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