F9
FARM & RANCH
THE NORTH PLATTE TELEGRAPH
SEPTEMBER 2020
PROTECT YOUR FAMILY
manent policy with a term policy. You can purchase a smaller Whole Life policy along with a term rider. Let’s say that you want a $200,000 whole life policy that will last until age 121 along with a $200,000 term rider that will last 20 years. Those are nice policies that will help a consumer get through the house payment years, then the permanent plan can carry you into retirement. Just as your homeowners insurance won’t pay a claim if you didn’t have the policy prior to the hail damage, life insurance companies won’t ap- prove unhealthy applicants. Clients controlling their cholesterol or blood pressure with medication probably won’t have trouble finding a policy but if the doctor is recommending an upcoming surgery, you’ll have to com- plete the surgery before applying for the coverage. The simple question is, would some- one who depends on you suffer finan- cially if you were to die tomorrow? If the answer is “yes”, then you need life insurance. If you have questions or want to vis- it about your life insurance needs or want a quote, please call Rebecca Nordquist at Phares Financial Ser- vices at 308-532-3180. I’ll be happy to visit with you. Just a reminder, Phares Financial has moved their office to 319 East B Street in North Platte.
very inexpensive and depending upon your age, may cost less than $25 per month. Many term policies are con- vertible to permanent ones without evidence of good health but do it as early as possible to keep the premi- ums down. Permanent Insurance: Traditional Whole Life policies offer the most guarantees. The monthly premium is guaranteed, and there is a guaranteed cash value and death benefit. Most whole life policies will last until the client is age 100 (for old- er policies) or 121 (for newer policies) so you probably won’t outlive the in- surance policy. They also can roll the annual dividends into the policy to in- crease the death benefit and/or cash value of the policy. Universal Life is more flexible than traditional whole life because premi- ums can vary from year to year. It has maximum guaranteed premiums and minimum guaranteed cash values and death benefits. Instead of dividends, universal life policies earn interest at the credited interest rate determined every year. But if you underfunded the plan early, the insurance company may want additional monies later to maintain the same coverage. Newer policies are called Guaranteed Uni- versal Life policies that as long as you paid a fixed premium every month without a late payment, they will guar- antee the policy to age 120.
cally covers funeral expenses so the majority of the insurance will have to fall on the individual. You should have between 8 to 10 times your annual salary in life insurance. For instance, if you make $50,000 per year, you should carry $500,000 worth of life in- surance to protect your family if you’re gone. That goes for your spouse as well. If you are dependent on 2 in- comes, you’ll need to protect both of you. Perhaps you are self-employed? Do you have a farm or ranch where you are the primary support? What hap- pens to your family if you die? Who wants to think about that but farming and ranching are one of the most haz- ardous occupations. Every year you see some farm tragedies in Nebras- ka, what happens to that family? Will they still be able to stay on the ranch? Can they pay off the bank? Will they lose their home? There are several types of life insur- ance so choose the type of policy that makes the most sense for you. Term Insurance: Term Insurance is one that lasts for a specified period of time such as 10, 20, or 30 years. These are usually less expensive with premiums that remain locked for the defined period of time but if you want the policy to continue after that period of time, the premium sky-rockets. So if you don’t die before the policy times out, your rate will jump drastically. These are
By Rebecca Nordquist, RD, MHA, CLTC
As the weather cools, the apples start to turn colors, and September brings Life Insurance Awareness Month. What a perfect time to sit down with a cup of coffee to review your insurance situation. In 2019, 61% of men and 57% of wom- en have some sort of life insurance coverage yet life insurance should be part of the foundation of your family’s financial security. According to LIM- RA, more U.S. adults are relying on employer-sponsored life insurance. The problem is when you leave the or- ganization, your life insurance doesn’t come with you. Most planners recommend that you maximize whatever your employer offers as well as have an individual policy that will carry you through re- tirement. Some employers only offer a $10,000- $20,000 policy which basi-
There are plans that combine a per-
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