LIFE INSURANCE - New Jersey

The Oxford English Dictionary defines life insurance simply as “Insurance that pays out a sum of money either on the death of an insured person or after a specific period of time.”

A primary reason to have life insurance is that it provides a death benefit – money that your family or other beneficiaries can use for whatever reasons they choose:

• Paying your final expenses, such as burial and estate taxes
• Family income to help maintain their standard of living
• Protect your family’s income by enabling them to pay off a mortgage, home equity loan and/or other debts
• Pay caregivers for aging or disabled relatives
• Child care
• Supplemental income for your husband, wife or partner
• Provide funds to settle your estate
• Pay expenses to keep a small business in the family

There are two types of life insurance:

• Full life insurance
• Term insurance

Your agent will work with you to determine the types of life insurance you need and to prioritize your objectives: help you focus on your current insurance needs, as well as your needs, should lifestyle changes occur.

The key to reaching your long-term insurance objectives is planning. Your policy’s goal may be to:

• Fund your children’s college education
• To protect your family during your working years
• To help fund your retirement

The amount of life insurance you need depends on:

• Your financial stability; job stability
• The size of your family
• Your family’s needs, should anything happen to you
• Your financial goals
• Your age
• Your state of health

All of these factors should be discussed with your agent so he can work with you to analyze your needs.