Independence Day for Your Life Insurance Portfolio

Independence is defined as freedom from the control and influence of others. Independence is about being able to make choices, your own choices. In the area of life insurance, this means your ability to choose the policy that best fits your needs at the lowest premium.
Dependence is where you rely on someone else to make your choices for you. To gain your Life Insurance Independence declare to yourself that you will educate yourself and make the best choices for you rather than the choices recommended to you by someone who may not have your best interest at heart.
What this means is that if your need for life insurance is simply a need for life insurance for a set period of time such as 20 years while your children grow, then that’s the length of time you should obtain insurance for. Obtaining a 20 year guaranteed level premium term life policy is what makes sense for you rather purchasing an Equity Indexed Life Insurance policy or some other type of cash value policy.

Freedom is also about the ability to choose. Different life insurance companies have different criteria for obtaining their best available rates – so gathering quotes from multiple companies is in your best interests and will help you to get those lowest rates. Using a term quote service like SelectQuote will allow you to obtain multiple quotes based on your personal medical (and financial) history. An extra five pounds could increase your premium dramatically from one company to the next.
Life insurance, like any other financial product, is a tool to assist you in accomplishing a specific goal (or goals). As such, it will assist the beneficiary when there is an economic loss, due to the death of the insured that extends well beyond just funeral or final medical expenses. The loss of future income, due to the death of a breadwinner can have a severe impact on the lifestyle of the surviving family members. Debt owed by the deceased may become due and payable as well as possible estate or inheritance taxes. Life insurance can create an immediate source of funds to enable the payment of these expenses and to provide a source of future income.
Keep in mind that life insurance is simply a financial leverage tool to assist with your overall planning. Life insurance can provide you and your heirs with substantial benefits. Keep in mind that as with everything, having choices is a good thing. And that’s what Independence is all about.
By Tony Steuer, CLU, LA, CPFFE
Tony Steuer, CLU, LA, CPFFE is a recognized authority on life and disability insurance literacy and a member of the California Department of Insurance Curriculum Board and the National Financial Educators Council Curriculum Advisory Board. He resides in Alameda, CA, with his family. Tony’s Questions and Answers on Life Insurance and The Questions and Answers on Life Insurance Workbook were winners of the Excellence in Financial Literacy Education™ Award from the Institute for Financial Literacy® . Tony’s most recent book is The Questions and Answers on Disability Insurance Workbook. Questions and Answers on Life Insurance has been named by Forbes as 1 of 9 great investment books worth reading. Tony is a frequent speaker and media contact for print, online & radio. Visit Tony’s website:

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