1. LIFE INSURANCE $$
Do we need it ?

2. LIFE INSURANCE – “The Basics”
You buy HEALTH insurance in case you get sick!?
- to help you pay the doctor or hospital bills.
You buy AUTO insurance in case you have an auto accident!?
- to help you pay to get your car fixed or replaced.
You buy HOMEOWNERS insurance in case your home or property gets damaged!?
- to help you pay for the repairs to your home
or property.
Why do you need LIFE insurance?

3. LIFE INSURANCE – the “Need”
LIFE insurance is NOT really for YOU !?
It is for your family (children, spouse, disabled relative, or elderly parents); after you have passed-away.
It helps ensure that your family will be able to afford to maintain their current life-style for an unspecified time-period once you have passed away.
Essentially, they receive the benefit from you!

4. LIFE INSURANCE – “Who?”
You buy LIFE INSURANCE to PROTECT the people who depend on you (family) and would suffer a financial loss when you die if you do not have any.
The proceeds ($$) from you life insurance policy go to a beneficiary, who is the person(s) designated to receive the payment or death benefit.
The death benefit is the sum paid to the beneficiary by the insurance company.

5. LIFE INSURANCE – Reasons
To provide immediate cash ($) to pay for a FUNERAL, & other costs arising from the death or debts owed…..$10,000 for a funeral!?
To provide funds ($) that are tax-free income.
To pay-off a mortgage or other loans.
To provide housekeeping and child care services so that the surviving spouse can enter the workforce.
To provide the surviving spouse sufficient funds to stay at home or reduce work hours for a few years.
To provide any dependents (children) with an emergency fund or college fund for a few years.

6. LIFE INSURANCE – How it works
When you purchase a life insurance policy, you have established a legally-binding contract between the life insurance company (insurer) and yourself (insured).
In exchange for you making you monthly premium payments ($), the insurer agrees to pay a specified death-benefit upon your death. You determine what this amount will be.
The premiums collected from all policy-holders are placed in an insurance pool.
The Insurance Company will invest the money in the pool, but will always have enough on-hand to pay-out any number of claims.

7. LIFE INSURANCE – How it works
Life Insurance companies want people who are LOW-risk (ones that will live for a long time).
If a person dies shortly after they begin to pay their premiums, the insurance company loses money since they have not had enough time to collect enough premiums to cover the payout.
Therefore, when you apply for a policy, they will ask you many questions about your lifestyle; to include how many dependents you have and how old they are, how much money you make, what you owe (debt), what kind of health insurance you have, and how healthy you are. Prices/premiums will vary depending on your status.

8. LIFE INSURANCE – Where do I got it?
Some employers (job) offer a life insurance policy as a benefit.
NOTE: You get a great opportunity for this if you join a military service; Servicemen's Group Life Insurance (SGLI).
An Agent; Life Insurance specialist. This is the most typical. An agent will be the expert on HOW MUCH life insurance you may want or need, depending on your family situation.
The internet.
Life insurance policy premiums (monthly payments) are typically lower when you are younger; especially TERM policies.

9. LIFE INSURANCE – Types

10. LIFE INSURANCE – Term vs. Whole Life
RENTING a house
BUYING a house

11. LIFE INSURANCE – Term Life
Term life insurance provides coverage only for a specified period of time (x number of years); typically 1, 5, 10, 20 years or until a certain age is reached.
It provides a death benefit ($$) if you die during the policy term.  If the term (years) expires before you die, your beneficiary receives nothing. 
A term life insurance policy generally has no cash value, and therefore you receive no money back if you outlive the term or cancel the policy.  Many people purchase term insurance to cover a specific period when their income is particularly critical to those they’d leave behind.  For example, people buy term insurance to cover payments on a house or their children’s education costs.  A term insurance policy may contain a right to convert the policy to a permanent insurance policy, typically before a specified age or time period. 
Insurance policies may also include supplemental coverages, or riders, that tailor a policy to an individual.  These may include disability coverage which helps protect against loss of income due to sickness or injury, or accidental death benefits which pay an additional benefit to your beneficiary if you die as the result of an accident. 

12. LIFE INSURANCE – Whole Life
Whole Life or Permanent life insurance provides coverage throughout the insured’s lifetime as long as premiums are paid ($$) as required. 
One permanent life insurance policy can cover your entire life.  The premium can be fixed or flexible. 
A permanent life insurance policy also has a cash value which builds over time.  You get this money if you cancel the policy.   You may also be able to take a loan against the policy’s cash value, and the loan plus any unpaid interest would be subtracted from the policy’s benefit if you die.   
Types of permanent life insurance policies include whole life (the most common), universal life, variable life and variable universal life. 

13. LIFE INSURANCE – Premiums (Cost$)
$250,000 TERM policy (20 years)
Current Age
Monthly
(NON-Smoker)
Annual
(Smoker) 25
$27.53
$330.33
$55.71
$668.54 30
$27.88
$334.54
$60.17
$721.99 35
$29.88
$359.78
$67.42
$809.02 40
$36.03
$432.36
$97.95 $
One of the clear takeaways from the table: it's expensive to smoke!
Smokers on average will pay up to 200% more for their life insurance policies than non-smokers. 
The longer the policy term the more expensive it is (goes UP every 5 years).
Average policy costs range from $568 per year for a 10 year term policy to $1,528 for a 30 year term policy.

14. LIFE INSURANCE – Premiums (Cost$)
$250,000 WHOLE LIFE policy (permanent)
Current Age
Monthly
(NON-Smoker)
Annual
Cash-Value 25
$165.58 $ ? 30
$199.58 $ 35
$236.88
$2842.5 40
$286.67 $
WHOLE Life is about 6x as expensive (per month) as TERM.
However, WHOLE Life builds a Cash-Value that you can use “early” (prior to your death) if you need it. In some cases, you can even “borrow” from your policy. WHOLE Life also never “terminates” as does TERM (as long as you continue to make the premium payments)…this is why it is also called “Permanent” insurance.

15. LIFE INSURANCE – Cash Value
Whole Life policies provide a guaranteed amount of death benefit (in this case $250,000) and a guaranteed rate of return on your cash values.
Guaranteed Cash Values for a $250,000 Life Policy Purchased At Age 25 by a Healthy Non-smoking Male

16. LIFE INSURANCE – Recommendation
TERM policy:
Purchase a “small” ($25-$50,000) TERM life insurance policy for the spouse who is NOT the primary “bread-winner” (typically the wife/home-maker or part-time worker) or yourself if you are single (to help someone else bury you!)
If this spouse should die, the primary “bread-winner” can use the proceeds for the funeral expenses & any other debt associated with the spouse (her school loans, etc).
Since the primary “bread-winner” is already working & has a steady income, the future concerns may be:
- age of children; day-care, since you are still working?
- payment of additional debt?
- college fund?

17. LIFE INSURANCE – Recommendation
WHOLE LIFE policy:
Purchase a “good” ($100,000+) WHOLE life insurance policy for the primary “bread-winner.”
The amount of the policy is dependent on the future needs of the remaining family:
- Will the surviving spouse be able to get a job and become the primary “bread-winner”? OR
- Do you want to make it so that they do NOT have to go to work (need more insurance).
- Provide for the children? Maintain a standard-of-living. College expenses? Pay off debt (house mortgage)?

18. LIFE INSURANCE – “Debate”
The DEBATE:
Some people (“experts”) will say that purchasing PERMANENT or WHOLE life insurance is not worth it (too expensive).
They will recommend that you take the difference between the premium (cost) of a TERM policy and a WHOLE-life policy (which can be substantial), and INVEST it somewhere or someway.
The drawback of this viewpoint can & often is that you don’t do it…..you fail to continue to make the investment or you decide to use those funds somewhere else.
Additionally, your premium rates for TERM will eventually get so high that you won’t want to pay them, and then you will have ZERO life insurance.

19. LIFE INSURANCE – Term vs. Whole Life
RENTING a house
BUYING a house

20. LIFE INSURANCE – Summary

21. LIFE INSURANCE – US Military
SGLI
SGLI is a VA program that provides low cost group (“term”) life insurance to members of the Uniformed Services, including commissioned officers of the Public Health Service and the National Oceanic and Atmospheric Administration, cadets and midshipmen of the service academies.
Members are automatically insured under Servicemembers' Group Life Insurance (SGLI) for the maximum amount of $400,000 unless an election is filed reducing the insurance by $50,000 increments or canceling it entirely.
In 2014 the premiums increased to 7 cents per $1,000 or $29 per month for the maximum of $400,000, this includes a mandatory $1 charge for TSGLI.