A.L. Johnson Life Insurance Agency

7 things life insurance can do besides pay for a funeral...

- Provide peace of mind

- Provide money for terminal illnesses, heart attacks, strokes, or cancer diagnosis

- Provide access to money that doesn't get counted into your taxable income

- Act as collateral for a business loan

- Pay off a mortgage so your family can live without that expense

- Pay for college tuition

- Fund a trust to distribute generational wealth

Life insurance can do so many things!

Have life insurance questions? I'm your guy!👨🏾‍💼

Your term life insurance policy should have 2 additional features outside of the standard coverage!

Benefit 1: A conversion privileges

This benefit allows you to convert your policy prior to it's expiration date in exchange for a permanent policy such as whole life or universal life without needing to requalify. This benefit doesn't cost you more money but, it acts as a safety need in case you see that there will still be a need for coverage in the future. Even if your health has began to fail you can't be denied the opportunity to convert the policy and keep it forever.

Benefit 2: Accelerated death benefit

This benefit allows you to access a portion of the policy's death benefit while you're still living if you had a heart attack, stroke, concer diagnosis, and many other life threatening illnesses. Some companies allow you to receive up to 80% of the policy face amount while you're still living. This is huge!

Check your term life insurance policy to see if these benefits are attached. If not, you may consider making a change.

Have life insurance questions? I'm your guy!👨🏾‍💼

Yes, Grandma needs life insurance BUT...

🗣YOU need it even more!

Listen,

When Grandma passes away her kids are grown and she has very little debt. Should she try to leave an inheritance? Yes, however if she doesn't no one is going backwards financially except for the funeral expense which admittedly isn't cheap. Approximately $10,000

BUT...

What happens when someone passes away between 25 and 55??? How much money is needed then?

Not only does a funeral need to be paid for there are also many other considerations...

-If you're married what joint debt will your spouse be left to pay alone?

-Who will care for your growing children and with what money?

-Will your family have to move back to the hood because they can no longer afford the home you just bought in the suburbs?

-Is there enough money to keep your business afloat to keep as an income source for your family?

Really think about it! The biggest risk to your family is an untimely passing in those peak years of responsibility.

GET LIFE INSURANCE!

People always ask...

"How much should I spend on life insurance"

As a rule of thumb between 1-2% of your income should be your purchasing power for life insurance.

If you make $50,000/yr it's wise to spend $50-$100/mo to protect your family financially if something happened to you.

$50×12 = 600 which is 1.2% of your annual income

It makes sense to use 1% - 2% to protect the other 98% - 99%. It's actually a great deal when you think about it.

Get as much coverage as you can afford within those parameters and you'll never be overspending for coverage.

The numbers work best when you are young and healthy so purchase life insurance early!

Also, if you want to use your life insurance policy to build personal wealth while you're leaving expect to at least double the percentages mentioned above.

Have life insurance questions? I'm your guy👨🏾‍💼