Life Insurance Allocation Tool

Life Insurance Allocation Tool

Life Insurance Allocation Tool



Insurance Portfolio Allocation

Some people feel they need life insurance for a period of time – just long enough to meet their responsibilities for those who depend on them. This is typically done with term insurance.

Others, however, recognize that owning some form of life insurance for their entire lives can provide them with added protection and flexibility as they prepare for life’s possibilities. This is typically done with permanent insurance.

Many people find their objectives are best met with a combination of term and permanent insurance.

While determining the right amount of life insurance is a challenge for most people, deciding which type of policy can be even more confusing. In fact, half of American households (58 million) readily admit they currently don’t have adequate life insurance coverage – the highest level ever.

Some people feel they need life insurance for a certain period of time – just long enough to meet their responsibilities for those who depend on them. This is typically done with term insurance.

Others, however, recognize that owning some form of life insurance for their entire lives can provide them with added security and flexibility as they prepare for life’s responsibilities. This is typically done with permanent life insurance.

The Life’s Choices will present you with the opportunity to share your feelings and attitudes and provide you with guidance in choosing the appropriate type and amount of insurance. Many people find their objectives are best met with a combination of term insurance and permanent insurance.

The idea of leaving an inheritance is important to me – either for my family or a charitable organization. I would want to do this in an efficient manner.
 Agree
 Disagree

In the future, my adult children and/or parents may rely on me for financial support. I want to make sure my life insurance policy is there if they need it.
 Agree
 Disagree

I would prefer the least expensive type of insurance, even though my benefits may expire at some point in the future.
 Agree
 Disagree

I only want life insurance for a limited period of time (e.g. until my mortgage is paid, children finish college, or other financial obligations are met).
 Agree
 Disagree

If I die prior to my spouse during retirement, I want to ensure he or she receives a life insurance death benefit.
 Agree
 Disagree

If I were to die during my working years, I would want my family to receive a life insurance death benefit that would replace my income.
 Agree
 Disagree

Regardless of how long I may live, it’s important for me to have my life insurance in place when I die.
 Agree
 Disagree

I don’t want to commit to permanent insurance today; however, I’d like to have the right to convert term coverage into permanent coverage in the future should my situation change without having to undergo additional medical screening.
 Agree
 Disagree

Total:

Scoring:

0 Points = 100% Term
Clearly you're concerned about those who depend on you; however, today you feel you want coverage for a limited time. Based on your answers, a term life insurance policy with the option of future conversion should be considered. The next section will help you understand which permanent policy you may want to consider converting to in the future.

1-2 Points = 75% Term / 25% Permanent
You recognize the importance of owning life insurance throughout your entire life; however, you also acknowledge that your biggest concern is protecting those who depend on you during your working years. Life insurance products with mostly term insurance and a small amount of permanent insurance should be considered based on your answers.

3-5 Points = 50% Term / 50% Permanent
Your answers show that you appreciate both the benefits of permanent and term insurance. Life insurance products consisting of equal amounts of term and permanent protection should be considered based on your answers.

6-7 Points = 25% Term / 75% Permanent
Protecting those who depend on you for your entire lifetime - regardless of how long you may live - is most important to you. Your preferences indicate that life insurance products consisting mostly of permanent insurance should be considered based on your answers.

8 Points = 100% Permanent
You want lifetime protection, to leave a legacy and protect your spouse's retirement income. A permanent policy should be considered based on your answers.

Note:

Many companies offer term policies with guaranteed level premiums for a specific period of time. After the level premium period, the premiums increase significantly each year. During the level period you may be able to convert your term policy to a permanent policy with no additional medical questions or requirements.