ALLCHOICE Insurance :: Blog

ALLCHOICE is please to provide you with the updated Retirement Plan Contributions for 2010.

IRA CONTRIBUTION LIMITS

ROTH IRA CONTRIBUTION LIMITS

There exists a great debate among so-called financial experts with respect to what type of life insurance policy is best.  One one hand, you have the camp that believes in the value of a properly funded “permanent” life insurance contract (i.e. whole life or universal life).  The other camp feels that you should purchase term insurance and invest the difference into some financial product.  Regardless of which camp you fall in to, the life insurance industry created a Term Life Insurance product which included a “rider” that allowed you to receive all of your premiums paid into a term life insurance product back at the end of that policies term.

Let’s assume that you go to your agent and needed to purchase life insurance.  After you and the agent completed a Life Insurance Review (hopefully), you determined that you needed an additional $200,000 worth of protection.  After looking at whole life & universal life, you determined those two options to be out of your budget.  You agent then showed you a Term product which was much cheaper.  However, you did not like the idea of paying for something, which if you did not die during the policy’s term would just vanish.  Your agent then showed you that you could amend that term product, for an additional premium, with a rider which would return every premium dollar you had paid into the policy should you not die during the policy’s term.  That is a win/win for everyone!

Well, if you like the idea of that “win/win” scenario, you better act fast.  The rules that regulate life insurance contracts are changing January 1st,  2010.  Actuarial Guideline 45 applies to individual life insurance products that offer endowment benefits prior to the expiration date of the life insurance coverage (most ROP products offer the clients a partial return of their premiums paid should the insured cancel the contract before the end of the Term).  The new rules make these Return of Premium products too costly for Life Insurance Carriers to profitably sell.

While many companies will continue to sell these Return of Premium Policies, they will have ot increase the cost of the actual rider.  This increase will, more than likely, cause many individuals to stay away from these products as the “cost / benefit”  analysis will be drastically reduced.  Further, many carriers are completely stopping the sell of their Return of Premium Policies.  Unfortunately, the real losers in this increased regulation (from the government) of the life insurance industry is the consumer.

About The Author:  Jack Wingate is the co-founder, and President of ALLCHOICE Insurance in Greensboro, NC.  For more information about Jack Wingate, ALLCHOICE Insurance, or Life Insurance please visit: http://www.allchoiceinsurance.com

A recent report shows that sales of Fixed Indexed Annuities reached record levels during the second quarter of 2009. According to the report, total sales of Fixed Indexed Annuities reached $8.3 Billion. This $8.3 Billion surpassed the previous record, set in the second quarter of 2005, by nearly $800 Million. While the record is impressive on its on, the fact that the record came at a time when Annuity Carriers were attempting to decrease the amount of new sales by cutting premium bonuses, reducing commissions, and placing moratoriums on the amount of new business.

The fact is, despite the efforts of the annuity industry to decrease new annuity sales, many people are seeking a “flight to safety”. Over the past 12 months, there has been a huge decrease in the values of Amercian portfolios. As the United States Equity Markets experienced record levels of volatility, many people saw their retirement savings and other investments decrease dramatically. The sad truth of this problem is that a large percentage of the recorded losses came directly from the portfolios of Baby Boomers.

While the Baby Boomer generation may not ever reach “break even” on their investment losses suffered during the crash, it is apparent that they are not willing to take a chance on losing more. So why is the destination of the “flight to safety” Fixed Indexed Annuities? To those who understand the Fixed Indexed Annuity, that answer is very simple. The problem is that many people simply do not understand this product.

The Fixed Indexed Annuity, simply stated, is Fixed Insurance Product that guarantees the owner (or annuitant) that his or her principle (amount given to the insurance company) will never decrease (lose value). In addition, the annuity can increase in value if the performance of an Equity Index (most commonly the S&P 500) performs favorably during your contract. While there are hundreds of different Indexed Annuity products that calculate earnings in a multitude of ways, the theory remains the same. You may be asking yourself, “what’s the catch?” The catch is that in exchange for the Insurance Carrier providing a guarantee of your principle and giving you the possibility of earning market linked returns, the Insurance Carrier wants time and a percentage of the earnings.

The fact is, most Fixed Indexed Annuity products have Surrender Periods of 5-12 years. If you decide to take your money out of the contract during this Surrender Period, the Insurance Company will charge you a fee (called a Surrender Charge). This Surrender Period allows the Insurance Carrier to take your principle and make long term investments. The other caveat with the Fixed Indexed Annuity is that the Insurance Carrier also retains a portion of the contracts earnings. Simply stated, they take out the possibility of loss but also limit the upside earnings. To understand this concept, let’s look at an example:

A person places $100,000 into a Fixed Annuity Contract with XYZ Carrier. On the date the contract is issued, the S&P 500 Value was 900.00. 12 Months later, the S&P 500 Value was 1,080.00. That is a 20% increase in the underlying Index. At the contract anniversary, the Insurance Carrier credits the Indexed Annuity with a $15,000 (15% increase). The remaining difference is retained by the carrier.

As you can hopefully see, the Fixed Indexed Annuity offers two important benefits to those who choose them. First, they provide the contract owner 0% chance of loss. Second, they offer the contact owner with an opportunity to earn higher returns than the average Fixed Annuity of Certificate of Deposit. There are other benefits of the Fixed Indexed Annuity that we have not discussed, but you can see why so many people are turning to the Fixed Indexed Annuity as the destination of choice for the “flight to safety”.

Recently a business associate / friend was blessed with his first child.  I was fortunate enough to have daily discussions with him leading up to birth.  While I do not like to consider myself “old”, for the most part, most of my peer group have stopped having kids.  Hearing my friend talk about the good and bad times leading up to birth brought back memories.

The time leading up to the birth of your first child is both exhilarating and scary.  You are experiencing new things each and every day.  However, since this is the first time you have experienced such a monumental undertaking, you thoughts are inundated with thoughts and feelings of doubt.  “Will I be a good parent?”  “Will I provide for my family financially?” “How will I provide for my family?”  The list goes on and on.

The fact is, as a first time parent, you have a different set of responsibilities.  As a young person / couple the last thing in the world you would think about is the need for life insurance.  When a person is in his / her twenty’s, there is a feeling of immortality that exists.  However, there is one constant in this life, you are going to face death at some point in time.

Now, as a new parent, you are not only responsible for yourself, you are now responsible for making sure that new little bundle of joy has a future.  Given that we will all face death, and that the loss of your income due to premature death could cripple you new family, life insurance should be the first thing you purchase once that little one is born.  Of course, you are thinking that you now have diapers, formula, clothes, and many other things that will add to your expenses, and that the last thing you need is something else to take your money.

I now ask you to think about all the extra expenses you and your family are faced with given your new addition!  Would those expenses stop if you passed away?  Are those expenses going to decrease at any point during the first 16-20 years of that baby’s life?  I hope that you answered both of those questions with a resounding “NO”!  Take it from a father of three, the expenses never decrease.

Life Insurance is that “ounce of prevention” that can make the difference between little Johnny or Julie having the future you dream he/she could have, and a life filled without a parent and/or hope.  While having some life insurance is better than having no life insurance, please do not make the mistake of just buying a life insurance policy.  The key to building that foundation of hope for your child is having the correct life insurance policy.

The most important aspect when purchasing a life insurance policy is to buy the right amount.  While there are many online resources that will help you determine the amount of life insurance a person needs, the best thing for you to do is consult a Professional Advisor.  Now, there exists a stereotype with regard to life insurance salespeople.  Many people feel the these professionals are only concerned with selling you most expensive policy they can.  This may be true of some, this is not the norm.

A professional advisor should be concerned with providing you the right amount of protection at a cost that is affordable.  The best way for you to purchase life insurance is to determine the amount of money you can afford to pay, then build a life insurance plan that will fit your budget.  If your budget allows you to purchase the amount of coverage you need fully in permanent coverage then do so.  If you budget allows you to purchase the amount of coverage you need partially in permanent and partially in term then do so.  If your budget only allows you to purchase the amount of coverage you need in Term, you guessed it, then do so.

There are many types of plans, and some “TV Experts” will tell you how any plan other than Term is wrong, I will tell you that any time you can afford to purchase permanent insurance, you should.  Think of the difference between Term and Permanent Coverage in this regard, Renting vs. Owning.  However, when prompted to tell someone what the very best type of life insurance coverage is, the truth is simple.  The very best type of coverage a person can own, is the one that is in force at the time of death!

Being a new parent is exciting.  Being a new parent is scary.  Buying life insurance to protect your family’s future is easy!  Don’t procrastinate, call an advisor today.

About The Author:  Jack Wingate is a Professional Insurance Advisor and Founder of ALLCHOICE Insurance.  For more information about Jack Wingate, ALLCHOICE Insurance, or protecting your family’s future with a properly structured life insurance plan, visit http://www.allchoiceinsurance.com

The Baby Boomer Generation should be entering the best years of their lives.  Indeed, the Baby Boomers should be preparing to enter the “Golden Age” of Retirement.  Years of sacrifice have been spent working, building, saving, and preparing for this so called Golden Age.  In what seems like a blink of the eye, all of the preparation Baby Boomers have done over their lives has been lost.

The fact is, Baby Boomers are in bad shape financially right now.  Does this mean that every Baby Boomer is facing a life on the street?  No!  However, Baby Boomers face many tough decisions over the next 10-15 years.  Let’s look at what has happened to our economy over the past 18 months.

• Housing Market Collapse ($3 Trillion In Home Equity Lost)
• Stock Market Collapse ($11 Trillion In Stock Market Wealth Lost)
• Job Market Collapse (3.8 Million Workers over 45 Unemployed)

I will refer to the above 3 collapses as the “Unholy Financial Trinity” (UFT).  Let’s examine how each of these has forced the Baby Boomer Generation into their current predicament.

Housing Market Collapse

The Baby Boomer Generation grew up in a period where the importance of homeownership were stressed as the essential building block of the American Dream.  As the Boomers marched their way through the financial minefield of the ’70′s, an even greater importance was placed on Real Estate.  Financial Guru’s exhalted the values of using Real Estate as a foundation for a person or family’s financial plan.  Like good stewards, the Boomers purchased homes, vacation homes, & rental homes.  Not only did they purchase these pieces of real estate, they plowed countless dollars into expanding and remodeling these homes.  All of this was done as a means of value creation.

The theory was great, the actual reality was not!  In theory, a person buys a piece of real estate, pays the mortgage, gets the tax breaks, and when the time came (i.e. retirement) the boomer could turn around a sell the property, at a substantial profit.  This new found windfall was to act as the foundation for the Boomer’s Retirement.  What has actually occurred goes something like this: property purchased, mortgage payments are made, property owner wants to add on an addition (hopefully creating extra value), property owner refinances mortgage and pulls equity out of property for renovations, 2007 Housing Market Collapses dropping Home Prices by 20%+, property owner can not sell property (even at depressed prices).

We will call this “Strike One”!

Stock Market Collapse

During the working career of the Baby Boomer, the Federal Government has enacted several laws to “aid” the American Worker with respect to saving for retirement.  I think we can safely agree that the days of companies providing “Pensions” to their employees has come and gone.  While there may be some Boomers out there that are fortunate enough to still be receiving Pension Checks from their employers, the vast majority of Boomers have been placed in control of their own retirement savings.

Through the introduction and implementation of plans like the Individual Retirement Account, 401K Plans, Roth IRA’s, etc., Boomers have been advised, again, by the Financial Guru’s to put as much money each month as you can into one of these retirement vehicles.  Next, these same Guru’s told stories of purchasing stock in companies, or mutual funds, and holding on to these investments until retirement (basic Buy & Hold Strategy).  Boomers were told and advised ad-nauseum about how the stock market and mutual fund investments were the best performing asset class over a 30 year period.  Again, like the good stewards they are, the Boomers headed the advice placed Trillions of dollars into the stock market.

Once again, the Theory of this type of investment WAS good in principle…30 years ago!  Today’s financial markets are fast paced entities.  Long Term Investments, by today’s standards might mean an investment period of 6 months!  When the Stock Market Crashed, those same Financial Guru’s who “looked out for their clients” were no where to be found.  There are literally hundreds of stories in my small town of people’s retirement accounts losing 50% or more of their value.  If you have an individual who has $500,000 in their retirement account and suddenly they have $250,000, do you not think that a major lifestyle change is sure to follow?  That life change would have to be either delaying retirement or going back to work!

Job Market Collapse

It seems that the Unholy Financial Trinity was, again, one step ahead of you!  In a period where Trillions have been lost in the housing and stock markets, there is still time to regain some of those losses by working!  With the job market collapse, many Boomers do not even have option.  Boomers are being layed off or replaced from jobs they have held for 30+ years.  Now, that the Boomer has lost his/her job they are finding the going increasingly tough to find a new job since there are nearly five (5) people applying for each and every job that is available.

So Where’s The Help?

You might be asking yourself, “Where is the help you told us about in the title?”  Be patient!  The importance of defining the problem and the underlying factors can be understated.  Many of you, I assume, feel no responsibility for the current state of your financial situation.  That lack of responsibility will lead you, or your family, down this same path again.  Please understand, there are forces at work in this current crisis that are out of your control.  However, as a person, as a generation, as a country, we must learn that at the end of the day we are responsible for our own situations.

In order to move forward and regain some of the financial security that we have lost, the first step must be to take responsibility for our part in the problem.  The second step is to chart the best course to move forward.  The final step is to act!  The best plans most often fail due to lack of action!

There is no way that to provide counsel on resolving the problems you may face with each of the Unholy Financial Trinity.  I will offer you an option for the “Financial Assets” component of the Unholy Financial Trinity.  This option is not exciting.  This option is not a new concept.  This option is not any means to recapture all that your financial investments have lost.  The option that I give you is the Fixed Indexed Annuity!

Fixed Indexed Annuities

There have been numerous reports which talk about all that is wrong with the Fixed Indexed Annuity.  However, if you look closely at those very reports, you will see that the fault portrayed in these reports deals more with those few bad apples who misrepresent what Fixed Indexed Annuity does.  Understanding that the problem(s) lie with person selling the product and not the product itself will allow you to look at the benefits that the product offers and not the “expertise” of the Financial Guru’s (remember the problems these guys have already caused you?).

An annuity in its most simple form is a contract between you and an insurance company.  The contract is the yen, to Life Insurance’s Yang.  Where Life Insurance was designed to protect you from living to little, the annuity was designed to protect you from living too long.  There are basically three types of annuities: fixed, variable, and Fixed Indexed.  While we will not spend much time on each of these individually, lets hit the high spots.

• Fixed Annuities – These annuities are much like your Certificate Of Deposit.  You “deposit” a sum of money with the insurance carrier.  In return the insurance company will pay you a Fixed Rate of Return each year of the contract and guarantee you a fixed amount of annual income from the contract for as long as you are alive. (Please note this is very general and more education is required to understand the contracts fully).
• Variable Annuities – These annuities offer the same “back-end” in that the insurance guarantees you an annual income from the contract for as long as you live.  The difference is in the rate of return the contract pays to your policy each year.  Variable annuities invest the proceeds of your deposit in stocks, bonds, and/or mutual funds.  When the investments within the contract perform good (i.e. the stock market is good) the variable annuity should outperform the fixed annuity.  The greatest fault with this type of contract are that since the investments within the contract are directly linked to the performance of individual stocks, bonds, and/or mutual funds, your contract can lose money.
• Fixed-Indexed Annuities – These annuities are a hybrid annuity that combines the safety of the Fixed Annuity, with some of the performance features of a variable annuity.  The reason I say some of the performance features, is that the Fixed Indexed Annuity is GUARANTEED to not lose money (safety of principle) while allowing you (the contract owner) to participate in some of the gains of a given Index (S&P 500).  When the market is good, you win, when the market is bad, you don’t lose!

Now that we have a general understanding of annuities we can dive deeper into how a Fixed Indexed Annuity can help your retirement!  Fixed Indexed Annuities have come a long way in a short time.  The actual contracts have only been around for around 10 years.  The Fixed Indexed Annuity today offers features to the contract owner that can benefit the Baby Boomer who has seen his/her IRA or 401K lose much of its value over the last 18 months.

Before we go much further, I think an analogy needs to be made.  I am sure that many of you are familiar with the popular game show Deal Or No Deal.  In the game, the player chooses unmarked cases hoping that they do not choose the $1,000,000 case.  After each round of picking cases, the “banker”, offers the player a Deal.  He will purchase the player’s case for a certain amount.  The more cases the player picks that are low numbers, the better the deals get.  However, once the player picks some of the big numbers, the deal gets worse.  This is where most of the players mess up.  Assume after Round 2, the banker offers the player $150,000 for his/her case.  The player declines because the $500K, $750K, and $1 Million cases are still in play.  The next round comes and the player knocks our the $750K case.  The next offer goes down to $80,000.  Most players now think of the offer in terms of the last offer of $150K.  The player needs to remember, the $150K reality is GONE.  The new reality is $80K.

In that analogy, I hope that I portrayed one thing.  What you used to have, has no bearing on what you have now.  I have spoken to so many people that say the same thing.  I have lost X amount of money already.  I really like the Fixed Indexed Annuity and I see the benefits, but just let me hold out a little longer and try to make some of my money back.  Those people, much like the Deal Or No Deal players are living in the wrong reality.

So, you have lost money in your retirement account, or any other market related account.  How can a Fixed Indexed Annuity help me?

Let’s do an exercise!  First clear your mind!  Now, I want you to imagine the PERFECT place to put your Retirement Funds.  First, you would want something that offered you a good rate of return.  Second, you would want something that would never lose money.  Third, you would want something that could provide you with income for your retirement.  Finally, you might want something that could grow outside of Uncle Sam’s reach!

Does that match up fairly well to what you have envisioned?  If you answered yes, then you don’t have to look any further.  If you answered no, your expectations are out of the reach of any financial product currently available, or you have joined La Costra Nostra (The Mob).

For those law abiding citizens that answered yes, the Fixed Indexed Annuity is worth looking into.  As stated earlier, the FIA (Fixed Indexed Annuity) offers the contract owner participation in some of the gains of the chosen Index (S&P 500).  While you do not participate in all of the gains, you do get a portion (for example the S&P 500 increases 10% over a year, you may receive 7%).  Each contract is set up differently, but the concept is the same.  In addition, the FIA guarantees that your principle (amount deposited) will never be less than the amount you initially put in.  Finally, the FIA will guarantee the contract owner a specified amount of income for as long as he/she lives.

Many Insurance Carriers that offer FIA’s have taken these contracts and offered great additional options.  Many FIA’s offer contract owners a Bonus on their initial investment (I have seen as high as 12%).  Yes, you heard me right, the carrier provides you with a Bonus for giving them money!  One FIA contract I have seen offers a rider that Guarantees that upon death, the contract will pay to the owner’s beneficiaries a minimum of your Initial Deposit + 5% compounded annually (less any withdrawls).  For Baby Boomers, the most exciting option some Insurance Carriers offer on their FIA’s is an “Income Rider”.

The Income Rider works independently of the FIA contract value.  In the simplest of terms, by utilizing and Income Rider, the contract owner has a seperate “Income Account” that is guaranteed to grow at a Certain Percentage (The best ones use 7%-8%).  Let’s look at an example:

Mr. X places $100,000 into an FIA.  The FIA’s contract value has grown on average 5% over the last 10 Years (approximately $163,000).  Mr. X decided to purchase the Income Rider on his FIA which guaranteed 8% Growth of his Income Account (approximately $215,000).  After year 10 (in our example), Mr. X has retired and needs an income to live off of.  Mr. X could start drawing his contract value down or he could activate his lifetime income (from the Income Account) which guarantees him $10,750 per year for the rest of his life.  Mr. X is 65 when he starts withdrawls, and according to some census information he will live until age 80.  Which account is larger?

In no way do I want to portray that a Fixed Indexed Annuity is a cure-all.  Nor, do I wish to infer that a Fixed Indexed Annuity is right for everyone.  However, if you are looking for a financial vehicle that offers Guarantees, then the Fixed Indexed Annuity may be something to look in to.

About The Author:  Jack Wingate is a Professional Insurance Advisor and Founder of ALLCHOICE Insurance in Greensboro, NC. For more information about Jack Wingate, ALLCHOICE Insurance, or Fixed Indexed Annuities please visit http://www.allchoiceinsurance.com

Young families, ages 21 – 45, tend to have the greatest need for life insurance. Why? The answer is quite obvious to anyone who actually fits the definition of a “Young Family”. During the “young family” stage, couples are typically just starting in their respective career(s). Young families are also creating the family by having children. Young families are also dealing with a huge amount of debt (home, car, student loans, braces, etc.). While determining the amount of life insurance necessary may vary from advisor to advisor, there are “standard” calculation methodologies present. The problem comes when one of the parents does not “work” outside of the home.

While the “Stay At Home Mom” may be less prevalent than she was twenty years ago, there are still a large number moms who “work at home”. As a husband who is lucky enough to have a “Stay At Home Mom”, I know first hand how valuable the job my wife performs on a daily basis is (as a personal side note, I have the utmost respect for any person who chooses to stay at home versus working out the home, yours is a job that goes without thanks or acknowledgment far too often). The problem that must be dealt with is…how much is the “Stay At Home Mom” worth in terms of dollars and cents? The second (and often hardest to overcome) problem comes in convincing both the husband and wife that the “Stay At Home Mom” NEEDS life insurance. Let’s tackle each problem individually.

Problem One – How Much Life Insurance Does The Stay At Home Mom Need?

The fundamental problem with life insurance is determining the amount of coverage any individual needs RIGHT NOW! In determining the amount of life insurance someone needs, a Professional Life Insurance Advisor will do what is called a “Needs Analysis”. The Needs Analysis may differ among Advisors and/or Life Insurance Carriers, but the general items stay pretty consistent.

• Final Expenses (Funeral Costs, Burial Plot, etc.)
• Debt Payoff (credit cards, car loans, student loans, etc.)
• Mortgage Payoff (while some may debate this, most advisors use this)
• Adjustment Period (typically one years salary)
• Education Fund ((Private School costs until graduation when applicable and/or total college costs) X # of Children)
• Income Replacement (most people fail to go this far in the analysis, we will discuss this in more detail below)

While most of the needs analysis is pretty straight forward, the final component of Income Replacement tends to be the most overlooked and complicated part.  In determining the Income Replacement component, the Advisor attempts to compute how much money, today, it would take to replace the income lossed due to the death of the insured.  This computation can be difficult since the Advisor is trying to predict how much money that individual would have made over the course of his/her working career.  There is no way to get this portion 100% correct.  In the simplest form, the Advisor takes the amount of money the person is making today.  The Advisor then subtracts any “Passive Income” the family may have (think rental property) that would continue with or without the Insured.  Next the Advisor subtracts the annual income of the spouse.  Finally the Advisor and Insured must choose a conservative rate of return that a lump sum of money could earn today.  Let’s look at an example:

Peyton (our example insured) currently makes an annual salary of $50,000.  The family owns a rental house that makes $5,000 a year after expenses (mortgage, insurance, repairs).  Peyton’s spouse does not work outside of the house.  Peyton and the Life Insurance Advisor believe a conservative interest rate that can be earned in today’s environment is 4%.  Let’s look at our calculation!

$50,000 – $5,000 = $45,000

$45,000 / .04 (4%) = $1,125,000

Therefore, in order to replace Peyton’s Annual Income (less passive income) the family would need to place a lump sum in the amount of $1,125,000 into an account earning 4% a year.  Please note that the calculation above does not take into account the draw down of principle!

As you can see, when calculating the amount of Life Insurance someone needs, there is a huge emphasis placed upon the insured’s annual income.  What happens when the person does not earn income?  This is the problem most advisors face when determining the amount of Life Insurance the Stay At Home Mom needs.  I have researched this topic in depth, and as of right now, most “accepted” assumptions place the annual worth of the Stay At Home Mom somewhere between $35,000 and $45,000.  Is this right?  In all honesty I believe there are three answers to that question.  The three answers are: Yes, No, and Maybe So!  I know personally, that if I had to hire someone to replace everything my wife does for me, my annual bill would probably be more like $60,000.

Problem Two – Convincing The Family The Stay At Home Mom Needs Life Insurance

If we are able to agree on an actual dollar figure to place on everything the Stay At Home Mom does during the year, the next (and biggest) problem that must be dealt with is convincing both the Husband and Wife that the Stay At Home Mom NEEDS life insurance.  You may be asking yourself, “Why must both the husband and wife be convinced that the loss of the Stay At Home Mom would cause financial hardship to the family?”  I actually ask myself that same question!  Stay At Home Moms, how mad would you be if someone said the job you do on a daily basis is not worth anything?  How mad would you be if you heard someone say that since you do not contribute financially to the family, you are less important than your husband?  By now, I would assume that you would probably be ready to rip someone’s head off.  Well, in my dealings with young familes, the WIFE makes the life insurance decisions about 75% of the time.  Yet, atleast 90% of the time, the wives I have dealt with will decline to purchase any life insurance on themselves!

I understand that most families feel like they need to prioritize expenses like life insurance.  I agree, to an extent!  If you are a Stay At Home Mom, your main objective should be to take care of the life insurance needs of the “bread winner” first.  As a Stay At Home Mom, you look out for the well being of the family unit on a daily basis.  Why would you stop looking out for the family at such a crucial time?  If you (the Stay At Home Mom) were to pass away today, would your husband be able to resume his day to day activities of providing an income for your family if you passed away tomorrow?  Would your husband be able to maintain his current work schedule while at the same time getting the kids off to school?  Would your husband be able to maintain his current work schedule and get the kids to soccer practice, swim practice, dance, or gymnastics?  The laundry list of extra jobs your husband faces with your death could lead him to an eventual breakdown.  If he breaks down, would his job performance suffer?  If his job performance suffers, could he lose his job?

This is my call to action for all Stay At Home Moms!  Your job is as important (in my opinion MORE IMPORTANT) as your spouse’s.  It is time for you to take the credit you deserve and realize your true worth.  You work tirelessly each and every day to make sure your family has all it deserves, doesn’t it make sense for you to leave your family in best shape possible when you are no longer here?

About The Author:  Jack Wingate is a Professional Insurance Advisor and Founder of ALLCHOICE Insurance in Greensboro, NC. For more information about Jack Wingate or ALLCHOICE Insurance please visit http://www.allchoiceinsurance.com