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Life Insurance Things to consider about life insurance ......
How much Life Insurance is right for you?
How much coverage should you own personally, not counting group term coverage? With so many people frequently changing jobs these days, many are learning that owning and controlling their own life insurance policy has many important advantages. In addition they are often surprised to learn that they have been significantly underinsured.
Traditionally, individuals tend to buy life insurance in round numbers — such as $100,000, $250,000 or $500,000 — or using the general rule of purchasing 8-10 times their household income. Few actually try to determine the correct amount to purchase. While doing so is a relatively simple process, it can be uncomfortable for some because it involves thinking about death. Given the importance of this issue to survivors, the best solution is to move beyond that discomfort and plan accordingly.
Determining What You’ll Need
Consider family needs within the first few months of your death. Funeral expenses, administrative costs and other immediate expenses can be shocking. In addition, clearing up unpaid bills or revolving debt like credit cards or consumer loans is often necessary.
Determine how much will be required to pay off any remaining mortgage balance on your primary residence.
Providing an education fund for your children is also critical. There are many schools of thought regarding this, but you must consider how much money you would like to see allocated for your children’s education in case of your death.
The final issue is often the largest — income replacement. If you have taken care of the above-mentioned needs, most studies indicate that a typical family can maintain its standard of living on 60-75 percent of pre-death household income. While it is a personal choice, you must consider whether the beneficiary will live off the principal paid by the policy or the income it generates through investments. It is also important to consider the length of time this money will cover. Most families decide that this should last at least until your children are out of college.
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American National Insurance Company,
Galveston, TX
American National Property and Casualty Companies, Springfield, MO
Farm Family Life Insurance Company, Glenmont, NY
Farm Family Casualty Insurance Company, Glenmont, NY
United Farm Family Insurance Company, Glenmont, NY
All products, coverages, and options are not available in all states, and eligibility requirements will apply. Products and services referenced in this website are provided through multiple companies. Each company has financial responsibility only for its own products and services and is not responsible for the products and services provided by the other companies.
Personal lines and commercial insurance products offered through one of these American National subsidiaries or affiliates: American National Property and Casualty Company (ANPAC®), Springfield, MO (except in CT, DE, MA, ME, NH, NJ, NY, RI, VT, FL, NC, MI, MS); American National General Insurance Company; Pacific Property and Casualty Company (California residents); ANPAC Louisiana Insurance Company (Louisiana residents); American National Lloyds Insurance Company (Texas residents); American National County Mutual Insurance (serviced by ANPAC – Texas residents); United Farm Family Insurance Company, Glenmont NY in MD and PA; Farm Family Casualty Insurance Company, Glenmont NY in CT, DE, MA, ME, NH, NJ, NY, RI, VT and WV.
Life Insurance products are issued through American National Insurance Company, Galveston Tx or Farm Family Life Insurance Company, Glenmont, NY. Disability Income products and services are issued through Farm Family Life Insurance Company, Glenmont, NY or Illinois Mutual Insurance Company, Peoria, Illinois.
Tax issues that may be discussed are subject to change and this is for your information only. Discussion of such issues does not constitute tax or legal advice. Please consult your tax advisor, attorney or CPA for guidance on all tax matters.
These brief descriptions of coverages available are for illustrative purposes only, and are not intended as a statement of contract. For actual terms and conditions of coverage provided, refer to your insurance policy, or, for more information about coverage options and availability, talk to your American National agent and eligibility guidelines apply. American National Family of Companies reserves the right to discontinue programs at any time.
This site may have links to other sites, which are not maintained by American National Insurance Company, it's subsidiaries or affiliates. Such links do not imply endorsement or approval of these sites or the content therein by American National, its subsidiaries or affiliates.
