Life Insurance with Perspective

life insurance with perspectiveWhile no one likes talking about their demise, remember this: life insurance is truly about life, not death. It’s important to consider life insurance with perspective.

Think about who is dependent on you financially (i.e., spouse, children, family), and how much income replacement is needed (i.e., seven to 10 years of salary) to sustain them after you’re gone. Are there financial goals (i.e., paying off the mortgage, funding children’s education)? Life insurance benefits can also pay for in-home support like childcare, cooking, cleaning, and other dependent care.

Life insurance helps alleviate financial burdens for your loved ones, so they can grieve and move forward without worrying about money.

Term life is the most common type of life insurance, and the least expensive. It covers you for a fixed period of years; if you outlive the term and your coverage expires, your beneficiaries don’t receive any money. Kind of like car insurance. The chances of a younger adult passing away is very low, which is why these policies are so affordable. With most term policies, the death benefit and your premiums stay the same for the entire term.

I often recommend clients purchase insurance on an individual basis, rather than through an employer group option, if possible. If you switch jobs, there’s no way to know if your new employer will offer similar coverage, if any at all. Locking in a fixed amount of portable coverage with fixed premiums while you are young and healthy makes a lot of sense. Layering two smaller policies of different terms (such as 20 years and 30 years) is cost effective. Over time, your income replacement needs typically decrease; one policy can expire, and you’ll still have an affordable policy in place for another 10 years.

“Make sure your family knows about your life insurance. When my uncle passed, there were no bills or statements for his insurance. The only clue that he had a policy was a premium deduction on his pension statement. Keeping a summary of your coverage in a safe and obvious place will help make a difficult time for your family a little easier.”

By |2022-06-06T15:35:20-07:00June 20th, 2022|Uncategorized|

Millennials Embrace Estate Planning

The events of 2020 – a pandemic, presidential election, social unrest – led many Millennials to begin estate planning, according to analysis from Trust & Will. The company examined data from nearly 20,000 individuals aged 25 to 40 years who reported creating their estate planning documents last year. While “having a child” was the number one reason Millennials embrace estate planning (38 percent), “2020” or “The Pandemic” came in second at 17 percent.

Millennials embrace estate planning

Image by 5688709 from Pixabay

Millennials Embrace Estate Planning

What did they include in their estate plans?

  • 79 percent designated a pet guardian in their wills;
  • 38 percent completed health care documents (i.e. HIPAA authorization form, advanced directive, power of attorney);
  • 50 percent specified they want to receive “extreme” medical care only if the benefits outweigh the burdens (suggesting they place a greater importance on quality of life);
  • 26 percent opted to donate their organs;
  • 50 percent included specific directions for their funerals; and
  • 7 percent designated a portion of their estate or a specific dollar amount to charity.

Get insights on how you can help reduce anxiety with estate planning.

By |2021-04-15T12:12:01-07:00May 3rd, 2021|Uncategorized|

Lupe Camargo Serves Arizona Girl Scouts as Board Chair

Lupe Camargo Serves Arizona Girl Scouts as Board Chair

Lupe Camargo serves Arizona Girl Scouts as board chair: Perspective Financial Services is proud to announce that Lupe was recently elected as chair of the Girl Scouts – Arizona Cactus-Pine Council (GSACPC) board of directors. A longtime community leader, Lupe has a strong connection to Arizona and the needs of women and girls in our state. She has supported and advised the local Girl Scouts council in many capacities for more than a dozen years, including as a parent, troop leader and long-time board member.

The Council welcomed Lupe during its annual meeting, which was held virtually because of the COVID-19 pandemic.

“Fifteen years ago, I walked into my first Girl Scout meeting,” Lupe said during her address at the meeting. “My daughter, now 20 years old, started as a Daisy in her Kindergarten class. We were both excited for the fun she would have, especially the 3 Cs we would experience: Cookies, Camping, and Crafts. As she remained involved, and I eventually became her troop leader I learned that yes, Cookies, Camping and Crafts were an important part of Girl Scouting… however, we learned there was much more.”

Click here to read Lupe’s speech, which the Council shared with AZ Big Media “as a means to empower, inspire and advocate for girls and women across Arizona.”

Photo by Mark Skalny