Apex Financial Management recommends life insurance for anyone who has loved ones who depend on them financially. This includes parents, homeowners with a mortgage, business owners and others.
| How life insurance can help | Best option |
|---|---|
| Breadwinner | |
| Life insurance can help replace your lost income so your family can continue to pay for everyday expenses. | Term life insurance can cover your working years. |
| Stay-at-home parent | |
| Life insurance would cover the cost of paying for services the parent does for free, such as child care. | Term life can cover the years your kids are young. |
| Divorced parent | |
| A policy could cover the support payments that a divorced parent makes. | Term life can cover the years of support payments. |
| Homeowners with a mortgage | |
| A policy can cover mortgage payments, so your family doesn’t have to move. | Mortgage Protection Insurance can match the years of a mortgage. |
| Someone with co-signed debt (such as student loans or credit cards) | |
| Life insurance could cover the cost of outstanding debt. | Term life can be timed to end with the debt payments. |
| Business owner | |
| Life insurance can pay off business debts, help heirs to the business pay off estate taxes, or fund a buy-sell agreement that allows a business partner to buy out your share. | Term life can be utilized, depending on the issue to be solved. |
| An investor who has maxed out other retirement plans | |
| Life insurance with a cash value component can provide a supplemental source of retirement savings. | Term life insurance, in addition to a ROTH or Investment account which builds cash value that you can access. |
Term life is sufficient for most families. It costs less than whole life, and you can choose a term that matches the years when people depend on you financially. By the time the term ends, you may no longer need life insurance: Your house will be paid down, your kids will be grown, and you’ll have some money in the bank.
How to buy life insurance
Apex Financial Management Group can provide you with free life insurance quotes. Here’s how to get the coverage you need.
Determine how much life insurance you need
The amount of life insurance you need depends on your family’s needs and priorities. Do you have debts to pay? Will your family need to replace your income to meet everyday living expenses? Do you want to fund a college education for your children?
Although you may have some life insurance through your job, it’s generally a good idea to have your own policy in addition to the coverage provided by your employer. The policy through your employer is likely not enough to meet your family’s financial needs and typically ends if you leave the job.
Debt and income replacement calculators can help you decide how much coverage you need before you get life insurance quotes. Here’s a calculator to get you started. You can find more here: How much life insurance do I need?