About Magazines Conyers - September 2017 - Page 10

PROTECT THREE KEY GOALS WITH LIFE INSURANCE
PROTECT THREE KEY GOALS WITH LIFE INSURANCE
THIS ARTICLE WAS WRITTEN BY EDWARD JONES FOR USE BY BRIAN CALLAWAY , FINANCIAL ADVISOR

September is Life Insurance Awareness Month . And “ awareness ” is an appropriate designation , because many people remain unaware of the many ways in which life insurance can help families meet their key financial goals . Here are three of the biggest of these objectives , as seen through the eyes of a hypothetical couple , Jim and Joan :

• Pay off mortgage – Jim and Joan have a 30-year mortgage . If one of them dies well before that mortgage is paid off , could the other one afford to keep making payments to remain in the house with the children ? It might be quite difficult – many families absolutely need two incomes to pay a mortgage , along with all the other costs of living . At the very least , the death of either Jim or Joan would likely put an enormous financial strain on the surviving spouse . But with the proceeds of a life insurance policy , the survivor could continue making the house payments – or possibly even pay the mortgage off completely , depending on the size of the policy and other financial considerations .
• Educate children – Higher education is important to Jim and Joan , and they ’ d like to see both of their young children eventually go to college . Of course , college is expensive : For the 2016-17 school year , the average cost ( tuition , fees , room and board ) was about $ 20,000 for in-state students at public universities and more than $ 45,000 for private schools , according to the College Board . And these costs are likely to continue climbing . Jim and Joan have started putting money away in a tax-advantaged 529 savings plan , but if something were to happen to one of them , the surviving spouse might be hard pressed to continue these savings at the same level – or at any level . But the proceeds of a life insurance death benefit could be enough to fund some , or perhaps all , of the college costs for Jim and Joan ’ s children .
• Provide for family ’ s future – Jim and Joan ’ s future income is their most valuable asset as they continue working . However , an unexpected death could leave this dual-income family with a single income that may not cover all financial obligations and retirement contributions – or even preserve the family ’ s current lifestyle . Life insurance could help cover these needs . Plus , the death benefit to the family may be tax-free . Clearly , a life insurance policy could allow Jim or Joan to continue on with life , despite , of course , the devastating emotional loss of a partner . But how much insurance should they own ? You might read that most people need a death benefit of seven to 10 times their annual income . This might be a good starting point , but everyone ’ s situation is different . You should consider all factors – including liabilities , income replacement , final expenses and education – to get an accurate picture of how much insurance is appropriate . A financial professional can help you with this calculation .
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Call or stop by our office for more information or to schedule a complimentary portfolio review . Edward Jones - Making Sense of Investing . Brian Callaway ( Financial Advisor ) 863 Flat Shoals Road , Suite 300 , Conyers , GA 30094 770.918.0725 - www . edwardjones . com Member SIPC
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