We’ve Got You Covered with an Umbrella, But Your Life Insurance Isn’t Under it
Pat yourself on the back. Your umbrella policy puts you ahead of the risk mitigation curve! But we noticed that you don’t have life insurance with us. Maybe you’ve got coverage through your job, but that’s not a reliable plan.
Let us round out your liability protection package with life insurance that safeguards the people most important to you. And here’s a bonus: Life insurance policies offer tax advantages that other planning mechanisms don’t.
Life insurance is like an umbrella for your loved ones
Think of life insurance as an added umbrella covering the people you leave behind for the future you want them to have. Your umbrella helps extend protection over your risk exposures and everything you’ve worked hard to achieve. Think of everyone you’re leaving behind. Now think of all the things and plans that depend on your income. If you’re the primary earner, life insurance is the replacement for your annual salary.
How much protection do you need?
The liability protection you currently have won’t matter much if your dependents can’t afford the home or car after you’re gone. Much like a home inventory, life insurance also deserves an inventory. Make a list of how much money it takes to maintain your dependents’ expenses each month. Include:
- Vehicles
- Homes
- Utilities
- Food and clothing
- Memberships and recreation
- Education (primary and secondary)
- Child care
- Eldercare
- Disabled adult care
- Medical treatment
- Inflation and taxes
- Business ownership
- Insurance
Life insurance assumptions don’t always match the reality
Life insurance extends protection over the ones you leave behind and shields them from financial risk when you’re gone. But people underestimate their future needs, leaving them at risk for increased premiums down the road.
| Life insurance assumption | Life insurance reality |
| I’ve got the right coverage for now. | An illness could leave you with higher life insurance rates or no coverage at all, right when you need it most. |
| Rates are low. | Insurance premiums increase by tiers, usually every five years. The older you get, the higher the premiums. And one diagnosis can change your rates, no matter what age you are. |
| I’ve always been healthy. | You may be healthy now, but an unexpected diagnosis can change your insurability status overnight. |
| I’m young and have no dependents. | That’s the best time to buy and get as much coverage as you can afford. You can get some inexpensive plans that allow you to build equity for future loans, too. |
| I’ve got enough through my job. | Your job might offer an easy and inexpensive path to life insurance. But it may not provide enough coverage for your particular needs. Also, what if you leave your job? |
| I’m retiring soon, so I don’t need life insurance anymore. | You might have grandkids or other dependents you want to help. There are tax advantages to life insurance as part of an estate plan. |
Tax advantages for large estates can mean significant savings
Have a large estate? Some life insurance policies can help you with tax-advantaged estate planning. Most life insurance is nontaxable, as opposed to retirement accounts or other real property that’s subject to income tax.
When the policy is controlled by you (not your employer), you can structure it to meet your estate planning goals. Your loved ones will save on taxes, and as beneficiaries, they’ll get paid regardless of contested estates or frozen bank accounts.
We’re here to help
Don’t leave your loved ones’ lifestyle to chance. Ping us for a quote. We’re here to help you reach your goals!
Contact Us
Reach out to one of our experts to learn more about how we can help with your umbrella insurance.
This content is for informational purposes only and not for the purpose of providing professional, financial, medical or legal advice. You should contact your licensed professional to obtain advice with respect to any particular issue or problem. Please refer to your policy contract for any specific information or questions on applicability of coverage.
Please note coverage can not be bound or a claim reported without written acknowledgment from a OneGroup Representative.
Written content in blog post: Copyright © 2021 Applied Systems, Inc. All rights reserved.