Protection for Your Beautiful Life

When most of us think of life insurance we think of something so morbid that it thwarts us altogether from even having the conversation. When I first had children, considering a life insurance policy made me feel like I was giving death the upper hand. I didn’t want to even think about the possibility of not being there for my children or my husband, but I also couldn’t imagine leaving behind a financial mess because of my naiveté. So I decided to sit with an agent and we discussed why getting insurance was necessary, but I still didn’t really “get it”. I bought it anyway. I bought enough term insurance to pay off my mortgage and figured the family had my husband’s income and they would be fine. Off to ignorant insurance bliss I went…… This was the case for many years until I sat with a friend who was also a licensed insurance agent. We had a very in depth conversation about the value of insurance, the types, WHY it was important for MOST people to have, how it can provide more than simply a sum of money at your death. To my surprise, he even educated me on how life insurance can also serve as an asset while you are alive. I am so thankful that we had that conversation because now I have the knowledge that guided me to make decisions based on facts and not fear. Allow me to share some things I learned from him and by becoming a licensed agent myself. 

Many people would be surprised to learn that there are insurance policies that can:

  • Build a Cash Value

  • Pay Interest

  • Guarantee Principal

  • Pay Dividends

  • And they can be accessed at any age, at any time, for any reason!

WHAT??? SIGN ME UP, right?! Insurance policies, whether temporary or permanent, ensure that you leave behind a legacy for your family or favorite charity. I am a huge proponent of life insurance and all it has to offer such as income replacement, paying for final expenses/funeral costs, paying off debt, education, etc. Losing a loved one is hard enough without also having to worry about the devastating financial loss that a premature death would place upon most families. The most important thing is getting it; first we decide how much, and then we discuss what type. Purchasing insurance is an act of love for your family.

Here Are a Few Facts to Ponder:

  • 1/3 of Americans say that they would feel the financial impact of losing a primary wage earner within ONE month. Half say that they will feel the impact within SIX months.

  • 95 million Americans have no life insurance.

  • 1/3 of women have NO life insurance, even though 70% of households have dual incomes. (This one astonishes me!

  • Life insurance companies look at your age, gender, height and weight, family medical history, and lifestyle. The younger and healthier, the better! The earlier you get insurance, the less expensive the premiums.

 
 

Here are the most common types of life insurance available and a brief explanation of how they work:

  • Whole Life Insurance – (Permanent Insurance): 
    Guaranteed permanent protection and cash accumulation combined with tax-advantaged access to cash value. Whole life never expires, you have access to guaranteed cash value (at any time, for any reason!), potential dividends, and grows tax deferred. Generally income-tax free death benefit.
  • Universal & Variable Life Insurance:
    Universal Life provides permanent protection with the flexibility to adjust premium payments. Variable Life offers permanent protection combined with investment potential. Generally income-tax free death benefit.
  • Term Insurance – (Temporary Insurance): Cost-effective short term protection for a fixed period of time. Available in periods of 10-30 years, term protection offers a more affordable option with guaranteed protection if you’re not yet ready to purchase permanent insurance. You also have the option of purchasing “Convertible Term Insurance” - This type of policy provides the benefit of obtaining less expensive term life insurance now while maintaining the option to convert to a permanent policy at a later date as insurance needs and financial resources change. Both generally have income-tax free death benefit.

Another Important Insurance is:

  • Income Protection Insurance (aka Disability Insurance):
    We insure most of the items we own that have significant value. By law we must even insure our home and our car, but why is it that we don’t think of protecting the MOST significant and valuable asset we have, OUR SELF and OUR ability to generate an income?

    Most people think that most disabilities are caused by a serious accident or injury, but statistics show that 91% of all disabilities are  often triggered by more common, chronic conditions like muscle and bone disorders. (back pain, muscle pain, joint pain)

    Generally, through your employer, eligible employees receive two thirds of their average weekly salary in the eight weeks before filing a claim, up to a maximum amount set by law. Is this enough?


There is a wealth of information out there on every imaginable insurance product available. Do your homework, read up, but most importantly speak with a professional. Life, Accident & Health agents are knowledgeable in the breadth of products available. Divine has access to all the major carriers and can help tailor a plan for you that fits your life and budget.

Tip: Some Great Sources of Information: www.iii.org and www.lifehappens.org

DIVINE ASSET MANAGEMENT LLC
39 Broadway, 36th Floor, NY, NY 10006
tel 212 344 5867 fax 212 509 5867

Dani Hughes & Valerie Sanchez
Co-Creators of Divine WealthWise Exchange

 

 

Registered Investment Adviser Securities offered through Divine Capital Markets