Adler Insurance strives to help Prescott residents determine if you have enough life insurance

It is never exact, but there are ways to make sure your loved ones are financially able to cope if something should happen to you, especially unexpectedly. Adler Insurance wants to help Prescott residents determine if you are adequately covered with the right amount of life insurance.

Again, this will not be an exact amount, but a good place to start is by calculating your long-term financial obligations and then subtracting assets. The number that you come up with is the “gap” that you will want your life insurance to fill. There are several formulas you can use to help you arrive at the right numbers. Here are a few:

The outdated rule
One rule, that many believe to be outdated, is the “income multiplied by 10 rule”. This does not take into account inflation, interest and one very important factor: the stay-at-home spouse/parent. Both parents should have a policy, even if one does not work. Should something happen to the stay-at-home parent, there will be hidden income costs that the “income multiplied by 10” will not cover. If you are going to use this calculation method, be sure to keep these things in mind.

Ten times your income, plus $100,000 per child for education
Thinking about education is important when coming up with the right amount to purchase. This is a good start, but do not forget to really study the “income multiplied by 10” to make sure you are taking into account everything.

DIME
This formula is probably a better way to go than the two previously mentioned. Why? DIME considers the following: debt, income, mortgage and education. All need to be considered when coming up with the right amount of life insurance.

• Debt: Make sure this is debt other than the mortgage. And don’t forget to add estimated funeral expenses.

• Income: How many years will you need this income? Perhaps sitting down with a professional will help you arrive at that figure.

• Mortgage: What is the amount needed to pay off the mortgage?

• Education: There are formulas you can use to determine the costs associated with education.

Once you determine which formula to use, you will then want to subtract your assets from that number.

Planning for the future is very important. It is also important to make sure you do not miscalculate when seeing to it that your loved ones will be taken care of. This planning should not be done in isolation. Let the experts at Adler Insurance, your life insurance experts in Prescott, look at your current life insurance policy(s) to make sure you are adequately covered. Call us today at 928-710-1455 and learn more about other types of insurance services we offer at http://www.adlerlifehealth.com.

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Adler Insurance Helps Prescott Residents Compare Whole Life and Term Life Insurance

The insurance experts at Adler Insurance understand that life insurance can be confusing. In order to make important decisions about life insurance in Prescott, it’s important to understand what is whole life and term life policies. Life insurance can be a very flexible and powerful financial tool that can meet multiple financial objectives, from providing financial security to building financial assets and leaving a legacy for the future. Deciding whether to purchase whole life or term life insurance is a personal decision that should be based on the financial needs of your beneficiaries, as well as your personal financial goals. Let’s look at some of the main features of term life and whole life.

Term Life Insurance

• Provides death benefits only
• Pays benefits only if you die while the term of the policy is in effect
• Easiest and most affordable life insurance to buy
• Purchased for a specific time period, such as 5, 10, 15, or 30 years, known as a “term”
• Becomes more expensive as you age, especially after age 50
• The term must be renewed if you want coverage to be extended beyond the term length
• Can be converted to whole life insurance

Whole Life Insurance

• Covers you for life
• Provides death benefits
• Cash value accumulation that builds during the life of the policy
• You typically must qualify with a health examination
• May be purchased without a medical exam, but at a higher cost
• Takes 12 to 15 years to build up a decent cash value
• Can be a good choice for estate planning
• Cash value is based on how much the return on investment is worth
• A portion of the cash value can be withdrawn or borrowed during the life of the policy
• Initially has more expensive premiums than term life insurance, but can potentially save you money over the life of the policy if in force for a considerable number of years

There are other factors that will help you determine the type of life insurance policy that is right for you, such as:

• Your current age
• Your health
• Financial needs of your family and the age of your children
• Plans for funeral and death expenses
• Your current financial situation such as mortgage and debts
• Your feelings on potentially paying into a term policy and never receiving any of that value back

With all these things to think about, most people depend on an experienced insurance broker to help them find the right policy for their needs. For Prescott residents, help is as close as Adler Insurance. Call us today at 928-710-1455, or to learn more about the health and life products we can offer, please visit our website at http://www.adlerlifehealth.com.

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You’re young… Adler Insurance explains why you should buy life insurance in Prescott

There are several good reasons for buying life insurance when you’re young. While everyone’s situation is different, there are some factors to consider that you may not be aware of. Adler Insurance, your local life insurance agent, brings you these tips.

Benefits: Life insurance is primarily purchased for the death benefit, but life insurance also has living benefits. The purchase of a whole life policy while you’re young can create a cushion for expected, or even unexpected events. Cash value accumulated in a whole life policy can be borrowed against, and used for a college education, a wedding, or even purchasing your first home. Your life insurance professional can help you structure your loan properly.

Retirement: Most of us understand the importance of having a 401K, an IRA and investment accounts to prepare for retirement. Having a whole life policy as part of your retirement portfolio means you can use some of the cash value of your life insurance to supplement your retirement income.

Premiums: The cost of life insurance premiums are based on age and health. Generally, the younger you are, the lower your life insurance premiums will be. If you wait until you’re older, you risk the possibility of a health status change, and you may be unable to obtain life insurance at an affordable cost, if at all. You’ll want to lock in your premium while you’re young--then it’s guaranteed to never increase.

Family: If you’re young and single, you may have more disposable income at this season of your life versus waiting until you have the expense of starting a family to consider.

Whether or not you are starting a new family or just out of high school, thinking about getting life insurance in Prescott is a must! Adler Insurance is here to help, call 928-710-1455. Visit us at http://www.adlerlifehealth.com.

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Adler Insurance Discusses the Need for Life Insurance in Prescott

Life insurance was originally designed to protect your family financially in the event of your death. However, over the years life insurance has evolved and may provide other benefits as well. Adler Insurance would like to help you answer the question, “Who Needs Life Insurance in Prescott and When Should You Buy It?”

Beginning Families - When you are young and decide it is time to start a family, you may want to look at purchasing life insurance. You will then be confident that your children will have financial support as they grow, in the event you die at an early age. It is also cheaper to purchase life insurance at a younger age.

Established Families - If your family is dependent on your income to support their lifestyle you may want to consider life insurance. This also applies to a work at home individual since the duties that they perform would be costly to cover in the event of their death, like cleaning, cooking, shopping, etc.

Young Singles - Even though you may not have a family to worry about at this stage, purchasing life insurance at this time in your life may be an excellent idea, because it is very inexpensive and you will have it in place as you proceed in life.

Homeowners - Since the mortgage payment on your home is probably your most expensive monthly payment, consider how a surviving spouse would be able to handle the payment with a single income. Purchasing a life insurance policy that would have the ability to pay off the mortgage in the event of the loss of a spouse may be a good investment.

Business Partners and Owners - If you have a business partner or own a business and there are people relying on you, you may want to consider purchasing a separate life insurance policy for the purpose of your business obligations or to ensure the continuation of your business if your should die.

So as you can see, most people in Prescott can benefit from the security of owning life insurance. In today’s insurance market there are a wide variety of life insurance products that you may want to consider, from simple term life to whole life or universal life, that often offer cash values and investment opportunities. To get answers to all of your life insurance questions, please contact one of our insurance professionals at Adler Insurance. You can reach us by calling 928-710-1455 or by visiting our website at http://adlerlifehealth.com.

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