Life Insurance 101 – Emergency Preparedness

Life Insurance Awareness Month #LIAM
Well OK, I’m biased on this topic today because I live in Florida and we seem to be in the path of Hurricane Irma. Please pray for us. Dealing with mother nature is never an easy task.

The topic of Emergency Preparedness does encompass Life Insurance. Why?

Before the storm:
Over 55K deaths have been registered a year from accidents that occur because of people falling off from ladders and other events when installing protection to their homes.

During the storm:
There are always brave souls surfing on the rough seas or walking the streets in the middle of a storm. The chances of drowning, being struck by lightning, or getting hit by debris increases with the strength of a storm.

After the storm:
The # 1 cause of death after the storm is electrocution from down power lines. And it does not have to be close to you. If it falls on water or on a metal fence, it can transmit strong electricity current across a great distance.

The recovery process can also be tough if you didn’t have a plan. Dealing with loss of power, scarce food and fuel, and property damage is not easy. Make every effort to document all damage timely and do your best to mitigate further damage.

Some Life Insurance carriers provide additional benefits including Emergency Relief. Some will pay between $300 – $1,500 cash to help you after a storm. Let’s check your policy today for these benefits!

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Life Insurance 101 – Who should buy it?

Life Insurance Awareness Month #LIAM
Most agents will tell you: “If you are a live human being, you should get Life Insurance.” And I somewhat agree.

As explained in one of my previous posts, Life Insurance allows the insured to transfer the financial risk of a fatal event. It allows those left behind not only to handle your final expenses but also protects their lifestyle as they are no longer able to benefit from your income earning potential.

Life Insurance has a place in everyone’s life. The type, purpose, and amount will be expanded in future posts but as a basic rule of thumb, this chart attached to this post can help you visualize who are the best candidates to prioritize having Life Insurance.

Some advisors would argue this but I feel it is important to also mention that having a policy on your children is a wise option. Not only the cost of the policy is economical but you would be protecting that child’s insurability in the future. Buying it early allows the policy time to grow providing in many cases a nice nest egg to use in the future. I should also note that “accidental death” is among the top 5 reasons of fatalities for kids between the ages of 0 – 14.

Stay-at-home parents are usually undervalued and often choose not to purchase Life Insurance because they do not generate any income. However, it is important to note that the value of their contributions to the home has a price tag in excess of $100K per year! The cost of their absence can severely impact the livelihood of the family.

Who else do you think should buy Life Insurance? Why?

Life Insurance 101 – Types of Life Insurance

Life Insurance Awareness Month #LIAM

Life Insurance at a high level can be divided into 2 categories: Term and Perm. Under each of those categories there are a few choices of products.

Most popular products under those categories and in the order of cost are:

$ 1. Accident Only – usually good till age 80
$$ 2. Term Life – sold in segments 10y, 15y, 20y, 25y, 30y
$$$ 3. Universal Life – considered a hybrid of term & whole life.
$$$$ 4. Whole Life – exactly as stated. Covers till age 121.

Accident and Term Life insurance are the most affordable options but there is no cash value accumulation. Some carriers may offer Return of Premium as an offset. These products are most attractive to people who are starting with Life Insurance and/or are looking for temporary protection.

Universal and Whole Life insurance offer guaranteed and non-guaranteed cash value accumulation. These are more attractive to people looking to save money for future use as the interest rate growth is significantly higher than what a bank can offer.

During the month, I’ll take the time to dissect each type of product with their pros and cons. I will also expand on the riders a client can select for extra protection.

To answer the frequent question of “Which one is better?” I would have to say that it definitely depends on these lucky 7 factors:

– Your Needs
– Your Budget
– Your Assets
– Your Goals
– Your Knowledge
– Your Age
– Your Health

All of the above points play a part on which recommendation type I would give you. And it does require an open and honest consultation of where you are today and where you are going.

Which one of these types of Life Insurance are you most intrigued about?

Voice it in the comments 😊

Life Insurance 101 – What is Life Insurance?

Life Insurance Awareness Month #LIAM

According to the Dictionary: “Insurance that pays out a sum of money either on the death of the insured person or after a set period.”

Essentially, you transfer to an insurance company the financial risk that your beneficiaries would be exposed to if and when something fatal is to happen to you. It is really no different than car or home insurance, it just happens to be applied to human life.

The concept of Life Insurance in American was first started as the “Philadelphia Contributionship for the Insurance of Houses from Loss by Fire” (whew… that’s a mouthful!) since the American housing construction was much like London in the 1600s – all entirely of wood.

An interesting history fact is that Life Insurance, is that it was greatly supported by Benjamin Franklin, who gladly added “Insurer” to his already long list of titles. He was instrumental in creating the first American Life Insurance Company: “The Presbyterian Minister’s Fund.”

Life Insurance, just like any other financial product, was not exempt of scandals and fraud. Ranging from insurers who did not have the right amount of reserves to pay claims to insurers forcing competitors out to create monopolies. Not to mention the countless of Life Insurance policies that people sold to unscrupulous sharks as collateral for loans. It was truly “all about the Benjamins! (Oh yes, I did… )

There was also a lot of outrage from religious authorities who did not agree with putting a value to human life until it was shown that it worked at protecting widows and orphans.

Insurance today has significantly evolved. Throughout the month you will learn how through regulation, technology, and financial concepts – it is no longer “Your Grandaddy’s Life Insurance”

Do you know any fun historical facts about Life Insurance? Feel free to post a comment!

September is Life Insurance Awareness Month!

Race Car Driver Danica Patrick returns as spokesperson for Life Insurance Awareness Month. She talks about her own personal story where her mother lost her father and he didn’t have any life insurance. Danica’s grandmother had to sell almost all of their belongings just to make ends meet.

You have the power to make sure your family does not suffer unnecessarily for not having a plan. Life Happens!

Take the time to learn about how life insurance works and how innovative products can help you mitigate risk and even provide you with a useful way to save money for the future if you are blessed with long life.

I will be posting each day a useful fact about Life Insurance to help you understand the power of this financial product. In the meantime, feel free to check out some awesome educational resources at Life Happens website: and watch Danica’s video.

Call me for specific questions or to understand how much and what type of life insurance you need!

The Easiest Part about Dying…

Let me level with you all! This has been weighing in my heart for a while:

“The easiest thing about dying is actually dying.”

It is not my intent to be grim but I’ve had a few deaths around me this year that have hit home. Some were family members, some were close friends – all of which makes you realize not only that life is too short, but that tomorrow is never promised.

However, what is more painful besides actually losing a loved one, is the fact that many died without a plan – WHY???!!!

And what is more annoying is the cultural believe that talking about death is a taboo topic! What should be taboo is not openly talking about your affairs with your family! 

Friends don’t let friends be without a plan! So, let me enlighten you on a few numbers:

– Avg. Funeral Costs: $10,000 – $25,000
– Avg. Credit Card Debt: $8,000 – $10,000
– Avg. Mortgage/Rent Payment: $1,500/Mo (Including Escrow)
– Avg. Utilities Expense: $600/Mo (Water, Light, Cable)
– Avg. Cell Phone Expense: $100/Mo
– Avg. Car Payment: $200/Mo
– Avg. Car Insurance: $150/Mo
– Avg. College Tuition: $20,000 per year
– Avg. Grocery Run: $150/Week

*** Note above are AVERAGES *** Some of us have higher expenses than others.

Now let’s get real… Imagine losing the breadwinner or a partner who helps with a good percentage of the household income… Imagine losing the child that takes care of you… Imagine leaving your spouse to take care of your kids on their own…

How long can you stay in your current home? Are you able to pay for funeral costs and other debts in a lump sum? Can you afford kid’s college tuition? If you are a stay home mom, can you afford to put your kids in daycare or aftercare while you find work? If you are still dependent on your parents, can you take care of their affairs if something happens to them? If your parents depend on you, can they easily make the transition to live independently?

Don’t put your loved ones under duress! Life Insurance is not what it used to be. Most people think the cannot afford a policy but the truth is, what you cannot afford is not having any type of protection.

If you can afford Netflix, Hulu, Starbucks, Phone Insurance, Premium Cable Channels, Makeup, Jewelry, Shoes, Game Subscriptions, Fantasy Game Leagues, Movies, or Eating Out – YOU CAN AFFORD LIFE INSURANCE!

Most people can get a simple $50,000 Accident Coverage for less than $10/month. And you can buy it with Return of Premium so you have nothing to lose! By the way, everyone in your family should be protected. Life Happens!!!

Don’t make “GoFundMe” your only alternative to cover final expenses. Make a plan! Talk it over with your loved ones, show them you care by protecting their well-being in the future.

It does not hurt to talk to an agent to find out what you should do. You should even talk to a few. All agents are not equal and we all have different carriers we represent. We won’t run your credit or ask you for your personal information until you are ready to complete the application process.

ASK QUESTIONS, BE INFORMED! And part of your plan needs to include setting up a Will, Trust, POA, and Health Care Directives which can be done online and at a very low cost!

Do it while you are still Young, Healthy – and ALIVE!

And of course, tell your loved ones how much you love them everyday. Don’t sweat the small stuff. Take Risks. Have less fears and more courage. Don’t be afraid about what you may lose but instead what you can gain.



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