Evaluating Life Insurance NeedsBecause life insurance typically becomes more expensive as we age, many people may believe they can’t afford to purchase coverage later in life. However, considering that life insurance is significantly less expensive today than it was a decade ago, you might be able to purchase new coverage and pay premiums comparable to those that were available when you were 10 years younger.1It’s a good idea to review your life insurance situation on a regular basis. Here are some reasons why your coverage may need to evolve to keep pace with your life. Life ChangesIf your income and/or net worth have increased significantly since you purchased your policy, ask yourself whether your current coverage would enable your survivors to maintain their current standard of living. Major life events such as birth, marriage, death, and divorce may also affect the amount of coverage you need. InflationBecause of inflation, a policy purchased years ago may no longer offer the same level of protection. For example, a 3% inflation rate can cut the purchasing power of a death benefit in half in about 24 years, based on the Rule of 72 (72 ÷ 3 = 24 years). 
Estate ConservationOne popular reason for owning life insurance is to provide liquid funds to help heirs pay estate taxes and any other debts. Considering that the estate tax has changed several times over the past decade, it’s a good idea to review your coverage in light of current estate tax laws and your net worth. As with most financial decisions, there are expenses associated with the purchase of life insurance. Policies commonly have mortality and expense charges. In addition, if a policy is surrendered prematurely, there may be surrender charges and income tax implications. The cost and availability of life insurance depend on factors such as age, health, and the type and amount of insurance purchased. Before implementing a strategy involving life insurance, it would be prudent to make sure that you are insurable. 1) USA Today, December 3, 2010 The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. © 2011 Emerald Connect, Inc. |
| The Capital Advisory Group, LLC. | (952) 831-8243 |
print this page| DANVERS, MA OFFICE: 150A Andover Street, Suite 2 Danvers, MA 01923 Office: (978) 777-6554 BLOOMINGTON, MN OFFICE: 5270 West 84th St. Suite #310 Bloomington, MN 55437 Phone: (952) 831-8243 Toll Free: 1-800-548-1820 Fax: (952) 400-4900 MAPLE GROVE, MN OFFICE: 11330 86th Ave North Maple Grove, MN 55369-4528 Office: (952) 541-9201 Fax: (952) 400-4900 SANDESTIN, FL OFFICE: 8969 Heron Walk Drive Sandestin, FL 32550 Phone: (800) 548-1820 Fax: (850) 650-0802 |
| • | bmachtig@investorscapital.com |
Securities offered through Investors Capital Corporation Member FINRA/SIPC. Advisory Services offered through The Capital Advisory Group Advisory Services, LLC, an Independent Registered Investment Advisor, not affiliated with Investors Capital Corporation, 5270 West 84th Street, Suite 310, Bloomington, MN 55437. The information presented herein should not be considered an offer to buy or sell securities. Such offer to buy or sell securities may only be made by prospectus in those jurisdictions in which the product and representative are appropriately registered.
The Capital Advisory Group, LLC and/or other advisors at The Capital Advisory Group, LLC are securities licensed in the following states: AL, CA, CO, CT, FL, GA, IA, IL, IN, KY, LA, MA, MD, MN, MO, NC, ND, NJ, NM, NY, OR, PA, RI, SD, TN, TX, VT, WA, WI.