Life Insurance

MICON's Insurance Services

Money can't compensate two children for the loss of a father. Money can't reach out in the night and caress you. Money can't come home at night with a briefcase, a twinkle, and a hug, but money can give you peace of mind. I had no peace of mind. Martin said a $25,000 life insurance policy was just peanuts. He was so wrong. It wasn't peanuts. It was peanut butter, milk and hamburger. It was the orthodontist and the pediatrician. It was summer camp. (From the best-seller Widow, by Lynn Caine)

Life insurance is an important piece in any financial plan, because it can:

• Replace income that would be lost with the death of a wage earner.
• Provide the funds to pay-off a mortgage or other significant debt so that your dependents will not have to sell assets to pay outstanding bills or taxes.
• Pre-pay funeral expenses, making a difficult day easier for those who love you.
• Provide child care, an emergency fund, or funds for education.

Choosing A Plan
There are two main types of life insurance: term insurance and whole life (permanent) insurance.

Term Insurance provides protection for a specified period of time. It can be purchased in large amounts for a smaller premium than whole life insurance. For this reason, it is used to pay off a loan (mortgage, etc.), or to provide extra life insurance protection. Term insurance policies provide level premiums for 5, 10, 20, and 30 year periods; and can be renewed or continued at higher premiums to age 85, 95, or 100, depending on your age

Whole Life Insurance provides lifelong protection as long as you live. With level premiums and the accumulation of cash values, whole life insurance is a good choice for long-range goals. The guaranteed cash values can provide money later on to help with temporary needs or emergencies.

There are other forms of life insurance, which are directly related to investment risk, and could require the policy owner to pay greater premium. MICON does not offer these policies. Before you consider purchasing one of these policies, you may want to talk to us.

There is an old saying, “Buy term and invest the difference. If you are investing on your own through a tax-deferred or tax-sheltered program, or if you are just investing in stocks, bonds, or mutual funds, then buying term insurance might be a good decision. However, if you have no investment plan, then buying whole life insurance, with its cash value and/or dividends, provides you with life insurance and a savings vehicle.

Some employers offer additional life insurance beyond their basic coverage. Usually, this additional life insurance is offered at a very reasonable price, and may not require medical information. It would be a wise decision to purchase this insurance, but remember when you leave your employer your basic and additional life insurance can be converted to a permanent policy, at a premium based on your age. For this reason, the life insurance through your employer/association should not be your only life insurance coverage. A personal policy should always be the foundation of your life insurance planning,

The amount of life insurance you need is not an arbitrary number. Before buying life insurance you should review your personal and family needs.