Walczak Associates
Life Insurance - Individual

Walczak Associates, Inc. has been successful in helping individuals in New York and New Jersey with their life insurance needs.

What does life insurance do well?
Only one thing: It pays a lump sum to a beneficiary in the event of death.

Because life insurance evokes so many emotional issues, it's not an easy topic for people to address. We'll be talking about the following commonly asked questions.
  • Do I need life insurance?
  • What type of life insurance (term or permanent) is best for me?
  • How much life insurance should I have?
  • What about life insurance as an investment?
  • Does it make any sense for me to replace my current policy?
Do I need life insurance?
For most people their need for life insurance fits one or more of these categories:
  1. To replace the income that is lost if the insured dies
  2. To satisfy debts
  3. To fund business agreements
  4. Estate taxes
  1. To replace the income that is lost if the insured dies
    • Family breadwinner: When the breadwinner dies, he or she is not getting paid and the dependents need money. Life insurance may provide a way to maintain a lifestyle.
    • Key man / person in a business: When a key employee in a business dies, the business may suffer a significant financial loss. Life insurance may buy time for the business to recover.

  2. To satisfy debts
    • Many people want their mortgage paid off when the insured dies.
    • Many business loans require full payment if a business owner or key employee dies (Key man / person)
    • Many personal loans have to be satisfied at death.

  3. To fund business agreements
    • When one of the owners of a business dies, a funded buy-sell agreement can often satisfy issues of transfer.
    • Employment contracts often require that insurance be provided.

  4. Estate taxes
    • Taxes on sizable estates are currently in flux. A life insurance policy may be used for the expected tax obligation inherited by heirs or to create estate liquidity.
What type of life insurance (term or permanent) is best for me?
Life insurance is available as either term or permanent. Term, which is pure insurance protection, is purchased for a definite period of time (i.e.10, 15, 20 years). Permanent life insurance policies are available as Whole Life, Universal Life, or Variable Life. While all life insurance policies feature a face value, permanent policies also feature a cash value.

Question: Why purchase a permanent policy?
Answer: Usually for a permanent need or a need that is longer in time than a term policy can provide.

How much life insurance should I have?
A better question is: what are you trying to accomplish by purchasing life insurance. Once you know what you are trying to accomplish, it often becomes clear as to how much you need. It's usually most helpful to discuss your particular situation with a professional insurance agent. We suggest, Walczak Associates, Inc.

What about life insurance as an investment?
This is where life insurance becomes complicated and controversial. While many profess the advantages of tax deferral, tax favored status, policy loans or forced savings, as a rule, life insurance makes for a poor investment. Unique situations, however, can make life insurance an investment vehicle to consider.

Does it make any sense for me to replace my current policy?
Often we find that existing policies do not meet the current needs of clients. As lives change regarding family obligations, business circumstances or a host of other reasons, policies purchased in the past may no longer be suitable. A periodic review makes sense and is highly recommended. In addition, over the past few years, life insurance rates have become increasingly competitive. With mortality tables showing an increase in lifespan, many insurance carriers' rates have dropped dramatically. As a result, policy replacement may be advantageous. We've enumerated a number of reasons for you to consider a review of your previously purchased policy.

Determining if you have suitable need, which type of policy to get, and how much life insurance to purchase is not an easy task. We at Walczak Associates, Inc. are knowledgeable, helpful and understanding. We're happy to help you determine your wants and needs, shop the market and assist with all required paperwork.


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