Robert A. Imparato, Jr CFP®

CERTIFIED FINANCIAL PLANNER™ professional

 

Craig A. Hyldahl CFP®

CERTIFIED FINANCIAL PLANNER™ professional

 

R.I.C.H. Planning Group, LLC

105 Fieldcrest Avenue, Suite #507

Edison, NJ 08837

 

Robert: 732-326-5240

Craig:   732-326-5240

Fax:     732-326-5331

 

Robert: robert@richplanninggroup.com

Craig: craig@richplanninggroup.com

Website: www.richplanninggroup.com

March/April 2020

More or Less

More or Less

How much life insurance should a person carry? The answer varies wildly, even among experts, but we know that “how much” changes as life changes. The important question to ask is, “How much insurance should you carry?” There are a variety of life circumstances that can influence your answer.


When You’re Younger
Some life insurances companies like to offer their rules of thumb, which can range from six to 12 times your annual income. While convenient, this rule doesn’t take into account the specifics of an individual life or family. You may have a special-needs child to support, a business to carry on or a spouse who is unable to provide financial support, increasing how much you need.


Generally, younger people have longer time horizons for which their families will need their income. During this time, your family may outgrow a house and children may head off to college, each with its own set of expenses. Even stay-at-home spouses offer financial help in the form of childcare and home care that you may have to pay for should the unthinkable occur.


When You’re Older
These and other child-rearing expenses can shrink as your children become adults, but don’t count on it. As evidence, you only need look at the financial support many parents offer their boomerang adult children, who may have trouble finding suitable employment. You may also carry a lot of debt when you’re older, which may have to be settled whether or not you’re here to pay it.


On the other hand, maybe your children made it financially on their own from the start, your mortgage is shrinking and your debt load is low. Your income, however, may be at its highest point as you near retirement. Your life insurance should reflect that.


Then, once you reach retirement, you may think about reducing your life insurance benefit. However, some retirees still carry life insurance that offers cash value to supplement their income. Others want to leave life insurance as a legacy for loved ones and favorite charities.


Applications for life insurance are subject to underwriting. No insurance coverage exists unless a policy is issued and the required premium to put it in force is paid.

GE-2763334(10/19)(exp.10/21)


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Securities offered through Equitable Advisors, LLC (NY,NY (212) 314-4600), member FINRA,SIPC (Equitable Financial Advisors in MI & TN). Investment advisory products and services offered through Equitable Advisors, LLC, an SEC-registered investment advisor. Annuity and insurance products offered through Equitable Network, LLC, which conducts business in California as Equitable Network Insurance Agency of California, LLC; in Utah as Equitable Network Insurance Agency of Utah, LLC; and in PR as Equitable Network of Puerto Rico, Inc. Equitable Advisors and Equitable Network are affiliated companies and do not provide tax or legal advice. R.I.C.H. Planning Group, LLC is not owned or operated by Equitable Advisors or Equitable Network. Equitable Advisors and Equitable Network are brand names for Equitable Advisors, LLC and Equitable Network, LLC, respectively. GE-4833845.1 (7/22)(Exp. 7/24) CFP® and CERTIFIED FINANCIAL PLANNER™ are certification marks owned by the Certified Financial Planner Board of Standards, Inc.
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