Do I really need life insurance?

Life will never be free from uncertainty. But when uncertainty is minimized, life can be maximized. No matter what stage of life you are in, if someone depends on you financially, you should consider reducing their uncertainty by protecting them with life insurance. In the event of a tragedy, life insurance proceeds can:

• Help pay the bills and meet ongoing living expenses
• Pay off outstanding debt, including credit cards and your mortgage
• Finance future needs (like your children’s education)
• Protect a spouse’s retirement plans
• Attract and retain key employees

Our life insurance programs available in Idaho Falls and Preston help protect what matters most. They are designed to be competitive over the long haul. To answer the question of whether you need life insurance, you need to understand the benefits and decide if the peace of mind and financial security makes sense to you.

Provide Protection & More

Our life insurance products offered in Idaho Falls and Preston include index universal life, universal life, whole life, term life and variable universal life insurance. Each product type has its own advantages and disadvantages. They all protect the people you care about the most. However, some can do more, such as build cash value or earn dividends and can become the basis for a solid financial plan.

While you can learn more about our products on this website, this information is no substitute for the guidance and assistance you’ll get by meeting with us. So, if you’re serious about protecting your future, contact Eagle Cap Insurance and meet with us to discuss your needs and explain the options that are available in Idaho Falls and Preston.

How much life insurance should I own?

Most of the so-called “experts” from TV or radio will say that if you are the breadwinner you should own 8 to 10 times your income. This is the first big mistake. If life insurance is about indemnification of loss then what was lost.

At death the family lost the income of the breadwinner.  Shouldn’t the answer be — We would like to replace that income of the deceased? Now the question should be — How much life insurance would I need to replace $100,000 of annual income and the answer would be $2,000,000. Why would an insurance company insure you for $2,000,000 and not $5,000,000?

The answer comes back to the definition of insurance being the indemnification (compensation) of the lost item — in this case the loss of the breadwinner’s income for his family.  If you received the $2,000,000 death benefit and we used the asset to create a monthly income at a 5% rate of return we would be able to replace the $100,000 salary every year into the future. In other words the reason the life insurance company would only insure you for $2,000,000 is that’s your economic life value based on your $100,000 salary and being between the ages of 25 and 40.

If we used the experts from radio or TV at 10 times your earnings you would have $1,000,000 at 5% or $50,000 per year. So the question becomes — If you were to pass on, what would you want to leave your family $50,000 or $100,000 in income stream?

Contact us at Eagle Cap Insurance and setup an appointment to learn more about Economic Life Value and how to use life insurance as an asset not just a cost!  Our insurance agency offices are in Idaho Falls and Preston, Idaho.

Types of Life Insurance 

Here are the three types of life insurance to consider:

• Term Life Insurance
• Whole Life Insurance
• Universal Life Insurance