Your life insurance benefit doesn’t always have to wait until you pass. There are living benefit riders that allow you to borrow against your death benefit while you’re still alive – pretty cool huh? Now, some of these riders may be a part of your current policy, but if you’re not sure it might be time for a policy review. If you’re looking into getting some coverage, be sure and ask about these riders.
So, take 5 with Byron and get the skinny on living benefit riders.
Whoa! That’s some great information. You’re ready to run some numbers, so check out our nifty calculator and get clear on what you need. Yea you see it – right down there.
Nifty Life Insurance Calculator
Our Life Insurance Calculator can help you get a rough idea of how much coverage you’ll need to make sure your family is okay financially when you die.
Annual income before tax: $Annual income is an important factor in determining your needs, but it’s not the only one. When you die, your life insurance is like your final paycheck.
% of income needed by dependents: %Because you’ll be gone, presumably they won’t need as much as you’re currently earning. Typically, 80% of your current income is a good place to start.
Your Age: yearsThe younger you are, the more years of your income your family stands to lose when you die.
Number of years benefits are needed:If you died tomorrow, how many years of income do you want to provide for your family?
Annual inflation rate (estimate): %Because of inflation, in order to maintain your family’s current standard of living, you’ll need to plan for increases in their annual income to keep pace. Historically, inflation has averaged between 2% and 4%.
Annual interest rate (estimate): %This is an assumption as to how much you believe your spouse will be able to earn on the death benefit proceeds. We have found that most surviving spouses are usually very conservative in how they invest the death benefit. The most common thing we see is that the money gets deposited into a bank account. You know your spouse better than anyone. Pick a number that you feel your spouse will be able to comfortably earn on the proceeds.
Good for you! You’ve taken the first step in keeping your family safe. So what’s next? You might consider calling 800-442-9899 today so we can help you figure out what kind of policy makes the most sense for you.