Myth#1: I can do it myself
Truth is, it makes sense to work with a financial representative. Here's why:
- Financial representatives are trained to help you assess your insurance needs, your overall financial situation, your tolerance for risk and the type (or types) of insurance that would be most appropriate for your unique situation.
- He or she will help you understand the complexities of insurance policies and riders and will help select the features and benefits right for you.
- A financial representative may be a catalyst in the planning process — bringing together your other advisors (such as attorneys, accountants, etc.) to form a coordinated planning team.
- He or she will continue to review your changing needs and will be available to help with any service needs that may arise.
- In the event of your death or disability, your financial representative will be a great resource to your family — ensuring that your claim is reviewed for benefits in a timely manner.
Myth#2: Insurance is too expensive
Insurance and financial solutions are available to suit nearly every need and budget. In fact, a healthy 35-year-old male can buy $250,000 of annual renewable term life insurance coverage for less than $20 per month! And for just over $100 a month, he could purchase a guaranteed death benefit for his lifetime.1 If he makes $75,000 per year, the same individual could potentially buy disability income insurance that would pay an after-tax benefit of $3,925 per month to age 65, should he ever become too sick or hurt to work. Better yet, he could buy that coverage for less than two percent of his annual income.2
The bottom line is that your financial representative can tailor a program to meet your budget and needs. For many people, the secret is to start small, then stick with it. Through the years as needs change and your income grows, you can apply for additional coverage and refine your strategy for achieving financial security.
1 Based on current rates and charges for a Principal Universal Life Protector policy for a 35-year-old male non-smoker rated Super-Preferred. For specific information, please contact your financial representative.
2 Disability income insurance calculations are based on a variety of factors. Disability income insurance also has limitations and exclusions. For specific costs and complete details of coverage, contact your financial representative.