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05-03-2010 by Colleen King
I saw this article title and had to look at it a couple of times. Deductible on a life insurance policy? That brought up all sorts of morbid concepts for me so I decided to read it.
Thomas Jurek, an agent in the Midwest, had an interesting article published in the Agent Sales Journal on this last December, and what he was pointing out was a different way to assess your life insurance needs and planning. His definition was that it was the difference between what a family needs and the amount they will receive at the time of the breadwinner’s death.
Most agents recommend an annual or biannual review of insurance in place. That way you can make sure there’s enough, or equally as important, do you still need all that you have? When kids have left the nest and are financially independent, a couple nearing retirement might not need as much life insurance.
Basically, the way I read this, is rather than the deductible being what you pay before insurance kicks in, this is more like what are you going to be stuck paying for, or going without, based on how much life insurance there is when the primary earner dies. For younger families with kids you have to allow for college and weddings. What assets do you have that you need to protect? Rental property? what if you lose the tenant? What do you have in savings and are you willing to deplete that if someone dies and the life insurance isn’t enough to meet your mutual obligations?
Lots of questions, and multiple answers for most scenarios. Bottom line, call an agent you trust and see where you stand. It could keep your family from having to make some really tough decisions at a difficult time.
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