Most of us take more time planning our vacations than our financial futures. That's why we decided that a brief discussion with a financial advisor top could do us all good. We spoke with Sarah Kaelberer, CFP, CHFC, a partner and president of Business & Estate Advisers Inc. in the Minneapolis area. It leads us through some misconceptions about life insurance and made a "succession".
What are the mistakes you see people make in life insurance?
So people have many misconceptions about life insurance. I hear, especially those who are just married or had their first child, is "I do not need life insurance." And I always answer: "Of course you do not. You are the one who will be dead. Your family needs "It is not what you need. It is this need for your family if you're not here.
Mathematically I can show most people they not need life insurance, especially those who are younger and who can not have them yet ensure it is important to ask yourself questions like:. can your family stay in your home, if you were not there the education of your children could it be funded and so on
this is not what you need;?. there is this need for your family if you're not here
another misconception with life insurance is that you never paid, but in this world there is one thing that is 100% certain that we :. going to die. If you buy a life insurance policy that will be there as long as you, your loved ones will definitely be paid.
How about those who just are t convinced insurance necessary?
I would say to them, Just look around someone that you know it was sick or died who has no insurance and compare this with someone who has . You will see how it's easier for a family to deal with these problems when there is insurance.
Our current " Insurance Barometer Study " shows that people 8-10 overestimate the true cost of life insurance. You see in your business?
I think it's especially true in people 20 and 30 years. When you talk to them to get $ 1 million or $ 5 million in coverage, they think these are big numbers. But what they do not understand is that only about $ 400 or $ 1,500 annually for the premium.
I also think they need to know that insurance can be "sliced and diced" and as affordable as anyone needs to be. This is an agent or advisor is here to help.
You also do estate planning. So, what do most people go wrong?
they do not think they have a succession if they do not think there will be taxes to pay when they die or if they do not have much money. It's always fun to explain that all a succession . it may be small, but it is still an area! Without proper documents and good planning, it could still be just as messy as a large estate when you die.
what the documents from which they should have?
a will, a health care directive and durable power of attorney. These documents are really important. As we move through our plans with clients, these estate planning documents are always a component.
All you want to add?
If your advisor does not put the life insurance conversations, make sure you do. No one likes talking about death or dying, but you want to make sure your loved ones are taken care of if something happens to you.
0 Komentar