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Meet Drew Clapp, Financial Representative

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Drew Clapp help families build towards financial freedom by educating them about concepts they can use in every day life to achieve their goals and wishes. He helps them protect their freedom by providing insurance. Drew provides a variety of services and products in which families can build towards becoming debt free and a rockstar in retirement. 

Contact Drew to find out more! Phone: 603-707-0337

Friends of Kevin Guest Blog post from Jack Wang - Have you considered this?

Have you considered this?

 

When meeting prospective clients, I’m often asked about the difference between term and permanent insurance.  Of course, most people simply think that perm is more expensive than term, and that’s the whole story.  

A nice introduction to insurance can be found on the LIFE Foundation website.  This is a non-profit dedication to educating consumers about life and other forms of insurance.  

The link is here.  Or if you prefer a video, click here.

 

While you can find lots of articles on the internet about the merits of term versus perm, very few articles I’ve seen actually consider these other important items:

 

1.      How much do you really need?

 

Most people I’ve dealt with tend to underestimate – probably because of optimism and probably because of cost.  They figure, heck, the spouse can go back to work.  But they forget to account for the cost of day care.  Or the fact that on 1 income, now the ability to save for college is basically gone.

 

And have you tried to find a job in this economy???

 

I always encourage everyone to estimate need a little high.  Consider this example:  If you want to buy something that costs $10 and you $11 in your pocket, you can buy the item and it’s not a big deal.

 

But if you lose a few dollars, and now only have $9 and can’t buy the thing you wanted, now it’s a big deal.

 

Or in the example with auto insurance – no one ever said that they wished their insurance only covered part of their accident repair instead of covering the entire amount.

 

A little extra coverage doesn’t hurt.  But too little coverage can be really painful.

 

2.      How long do you really need the policy?

 

Here again – probably for the same 2 reasons – people tend to underestimate.  One of the most common scenarios is that most people want to have their life insurance pay off their mortgage in the event of death.

 

The thinking goes – I have a 30 year mortgage, so I’ll get a 30 year term policy.  The coverage will last as long as the loan.  Great!

 

Well, the average mortgage only last about 7 years.  People refinance to build an addition, or to consolidate debt, or pay for whatever large purchase comes up.  Or simply to lower the payment.

 

So now, the mortgage is back to 30 years.  But the insurance is down to 23 years.  And chances are, the homeowner will refinance again in the future.  That insurance need has become permanent!

 

Think about it – how many people do you know who have actually paid off a 30 year mortgage?

 

Regardless of what you want to cover, often what people think is a temporary need is really a permanent need.

 

3.      How healthy are you really?

 

Health obviously plays a big role in the cost of insurance.  Every insurance company looks at health slightly differently.  Some prefer only very healthy people.  Others will insure people with medical conditions.  Just like banks.  Banks vary in the type of loans they will approve.

 

However, if you apply to a bank for a loan and are turned down, you can simply apply to another bank.

 

Not so with life insurance.  Once you’ve been turned down, it becomes extremely difficult to obtain insurance.

 

After helping a client determine the proper amount, the client went ahead and applied for insurance on her own.  Well, while she was quite healthy at the time, she forgot about a medical condition she had years ago, and it actually caused her to be denied.

 

And now this mom to a 6 year old daughter can’t protect her family.

 

Or if she really wanted coverage, she could probably get something, but at a very high cost.

 

So what does this all mean?

 

Well, life insurance can be quite complex and as a result, there can be a lot of pitfalls.  It’s not as simple as going online and buying a policy.  And it certainly goes beyond a simple term versus perm comparison.

 

If you’re serious about protecting your family, then take the time to work with an expert who can help make the process very simple.

 

Your family’s well being depends on it!

 

September is Life Insurance Awareness Month.  How are you protecting your family?

 

Take part in my poll about life insurance on LinkedIn.  The link is here.

 

 

Let's visit! Use this link to schedule a time with me:  https://tungle.me/thejackwang

 

 

T. Jack Wang
M.E.R.J. Financial Group 
voice - 877-226-4157

fax - 877-226-4157
Email: [email protected]

LinkedIn:  http://www.linkedin.com/in/thejackwang

Facebook: http://www.facebook.com/thejackwang

Blog: http://merjfinancial.blogspot.com/