Disability Insurance | Life Insurance | FAQ's

You've insured your automobile against accidental loss yet, only 1 in 70 accidents cause injury in a year!!

You've insured your home and personal belongings against loss by fire yet, only 1 in 88 catch fire in a year!!

You've insured your doctor get paid when he treats you!!

But have you insured YOUR OWN PAYCHECK if you get sick or hurt and can't work?

Who will pay you in the event disability strikes – and it does! Nearly one third of all wage earners suffer an injury or sickness that keeps them from working for at least 90 days.

How would you pay your Mortgage or Car payment, buy food, pay for utilities and other basic necessities?

Could you continue to pay your bills if you were unable to work for any length of time because of illness or injury? If you were to become disabled, do you know how much money would be coming in each month and from what sources?

Some people can rely on disability benefits form their employers and /or the government. But, for a great many people, income stops when work stops. Individual disability income insurance is designed to replace income when illness or injury stands in the way of earning a living.

What is Disability Income Insurance?

Disability income insurance provides you with income should you become sick or injured and unable to work. It helps protect against family catastrophe by giving you an income to meet daily expenses.

Disability income insurance comes in two major forms.

As with all insurance, disability income insurance operates on the principle that many people pool small sums of money to benefit those who need help. The beneficiaries are people who need adequate income should they become disabled.

How Much Disability Income Will You Need?

Add up all the benefits you are entitled to under the public and private programs mentioned, along with the monthly income you could count on from other sources such as your savings. If the total approaches your required income after taxes, you can assume that, should total disability strike, you would be able to pay your day-to-day bills while recuperating. You must remember that eligibility for Social Security disability benefits is contingent upon your disability being expected to last for at least 12 months or lead to your death. If the total from employer benefits, Social Security, and other programs along with your own resources will not be close to your pre-disability, after-tax income and will not be adequate to support your family, you will want to consider buying additional income insurance to make up the difference.

BAUCUM FINANCIAL SERVICES INC.

Please contact us for your Disability Insurance needs:

The two basic types of life insurance are permanent and term. Read on to help determine which one best suits your needs, or if you would benefit from a combination of the two.

Permanent life insurance can provide continuous lifetime protection as long as premiums are paid when due. Permanent policies also provide you with the opportunity to build cash value, so you can take a loan out on your policy – or withdraw a portion of its value – to help pay for a child's education, your retirement or a major purchase. There are two basic types of permanent insurance: one that offers a guaranteed death benefit and a cash value that can fluctuate based on the performance of an underlying portfolio investments.

Term life insurance provides for a limited period of time, and pays a death benefit only if you die during the term. For this reason, it is commonly referred to as temporary insurance. While term policies do not accumulate cash value, most offer conversion privileges which allow you to convert to permanent policies—without the need for a medical exam – within a pre—specified time period.

Combining permanent and term insurance: Of course another option is to combine permanent and term insurance coverage to obtain the advantages of both. This can help ensure that large debts and obligations are attended to in the event of your premature death. For example, a combination of coverage can be used to help insure a mortgage or child's education, while providing for your final expenses and family financial security.

Life insurance frequently asked questions (FAQ)

What is life insurance?
Life insurance offers a way to replace the loss of income that occurs when someone dies (usually the person who produces the majority of income in a family situation). It is a contract between you as the insured person and the company or "carrier" that is providing the insurance. If you die while the contract is in force, the insurance company pays a specified sum of money free of income tax – "cash benefits' to the person or persons you name as beneficiaries.

A good life insurance program does more than just replace the loss of income that occurs if you die. It should also provide money to cover the new costs that arise after your death, funeral expenses, taxes, probate costs, the need for housekeepers and child care, and so on. And these cash benefits should provide for your children and part or all of your spouse's retirement needs. In almost all cases, your beneficiary can use the cash benefits in the way he or she sees fit, without restriction.

Do you Really Need Life Insurance?
If there is someone who would suffer economic hardship if you died, then the answer is yes… You need life insurance! Families with young children have a clear need for life insurance. If both spouses work, the loss of one income will cause the family immediate economic hardship and make it harder for them to realize future goals, such as paying for the children's education. But even if one spouse works "inside the home" and doesn't bring in a formal income, his or her death will require the surviving spouse to hire child care, housekeepers and other professionals to help run the household – and that can be a significant new expense.

If you are married without children or single, then you need life insurance to protect your partner or surviving family members against the cost associated with your death. Funeral expenses, probate and administrative fees, outstanding debts, special obligations to charities, and federal and state taxes costs that all of us must consider. And, they can add up quickly. Unless you already have sufficient financial resources, your survivors will probably need life insurance to cover these expenses.

What happen to your family if you don't have enough coverage?
Under any circumstances, the loss of a loved one is a traumatic experience. But, if your family is also left without sufficient money to meet basic living needs or prepare for future goals, they will have to cope with a financial crisis at the same time. Depending upon their current financial resources and ability to "get back on their feet" emotionally and financially, your family ability to "get back on their feet" emotionally and financially, your family might be forced to move to a less desirable home or community, abandon education and career plans, reorder family priorities (such as the amount of time spent with the children) and , in general, cut back on quality of life you have worked hard to achieve.

Your family might even be forced to go into debt simply to pay the expenses, like funeral costs, taxes, and medical bills, that result from your death. A moment's reflection will tell you that the lack of sufficient life insurance coverage when a loved one dies can have devastating consequences for a family…consequences that can last for years.