September Fraternal Benefits Message 2024

When to buy life insurance: You should consider your financial situation and the

standard of living you want your family to maintain, such as dependents or spouses.

Absent a policyholder’s income, there might be a financial shortfall in paying day-to-day

household expenses, or for debts and big-ticket items such as tuition, for example.

“Who will be responsible for your funeral costs and final medical bills? Would your family

have to relocate? Will there be adequate funds for future or ongoing expenses such as

daycare, mortgage payments, or college?” Single people without kids may also have

financial obligations, such as funeral expenses, medical bills, debts like credit cards or

student loans, and financial support for elderly parents. What type of life insurance to

buy: There are two broad types of life insurance: term and permanent. Term insurance

is a pure protection product. These policies last for a designated term, perhaps 10, 15,

or 20 years. They generally carry fixed monthly premiums. The length of one’s financial

obligation is a good guide to the term one should choose. If a policyholder’s spouse is

35 to 45 years old and the policyholder seeks a financial hedge until their spouse retires

— perhaps at age 60 to age 65— the buyer might choose a term of 20 years, or a whole

life policy with a Term Income protection rider, for example. Ensuring there’s enough

money for young kids to go to college might mean having a policy that lasts about 20

years. Permanent life insurance, such as a whole or universal life policy, is meant to last

throughout life. It may make sense for consumers to pay for a lifelong policy if they want

to leave a financial legacy for charities, or reasonably expect to develop a medical

condition that can make it harder to get insurance later. Permanent insurance often

carries an interest-bearing account in addition to the insurance component.

Policyholders can build up cash value over time depending on factors such as dividends

or investment returns. The cash value can have various uses: to pay insurance

premiums, as collateral for a loan, or as cash in the event a buyer surrenders their

policy in the future. You may have life insurance coverage through your workplace. But

be aware that not all work place coverage moves with you if you leave your job and you

should assess whether additional coverage is needed. The Knights offer many options

to fit your personal financial situation. Give me a call and let me know how I can help

you best.

Ryan Janak – Field Agent

832-693-3160

Ryan.Janak@kofc.org