insurance quote san luis obispo Insurance Needs Analysis San Luis Obispo

Why do I need Life Insurance?
Life insurance is an essential part of financial planning. One reason most people buy life insurance is to replace income that would be lost with the death of a wage earner. The cash provided by life insurance also can help ensure that your dependents are not burdened with significant debt when you die. Life insurance proceeds could mean your dependents will not have to sell assets to pay outstanding bills or taxes. An important feature of life insurance is that no income tax is payable on proceeds paid to beneficiaries. The death benefit of a life policy owned by a C corporation may be included in the calculation of the alternative minimum tax.

Understanding Rate Class

life insurancePreferred Plus (Best Class)

  • No health impairments
  • No history of diabetes, cancer or heart disease
  • No high blood pressure
  • No Cardiovascular disease or cancer in either parent or siblings before age 60
  • No tobacco use in 36-60 months (varies by company)
  • Cholesterol under 220
  • No substance abuse
  • No hazardous activities

Preferred

  • No health impairments
  • No history of diabetes, cancer or heart disease
  • May have controlled blood pressure
  • No Cardiovascular or cancer death in either parent before age 60
  • No tobacco use in last 12-36 months (varies by company)
  • Cholesterol under 250
  • No hazardous activities

Standard Plus

  • Only minor health impairments
  • May have currently controlled blood pressure
  • No Cardiovascular death of more than one parent before age 60
  • No tobacco use in last 12-24 months (varies by company)
  • Cholesterol under 285
  • No substance abuse in past 7 years
  • No hazardous activities

Standard

  • Some health impairments
  • May have currently controlled blood pressure
  • No cardiovascular death of a parent before age 61
  • No tobacco use in last 12 months (varies by company)
  • Cholesterol under 300
  • no substance abuse in past 7 years
  • No hazardous activities

How much Insurance do I need?

Before buying life insurance, you should assemble personal financial information and review your family’s needs. There are a number of factors to consider when determining how much protection you should have. These include:

  • Any immediate needs at the time of death, such as final illness expenses, burial costs and estate taxes.
  • Funds for a readjustment period, to finance a move or to provide time for family members to find a job.
  • Ongoing financial needs, such as monthly bills and expenses, day-care costs, college tuition or retirement.

Although there is no substitute for a careful evaluation of the amount of coverage needed to meet your needs, one rule of thumb used is buy life insurance that is equal to five to seven times annual gross income.

If you want to be more precise, take the time and complete the Needs Analyzer

Choosing a Plan

Buying life insurance is not like any other purchase you will make. When you pay your premiums, you’re buying the future financial security of your family that only life insurance can provide. Among its many uses, life insurance helps ensure that, when you die, your dependents will have the financial resources needed to protect their home and the income needed to run a household.

Choosing a life insurance product is an important decision, but it often can be complicated. As with any other major purchase, it is important that you understand your needs and the options available to you.

The main types of life insurance available are term and permanent. Term insurance provides protection for a specified period of time. Permanent insurance provides lifelong protection.