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BAE Systems - Life Insurance

This comes more from the heart than the calculator.

Families, it is crucial life insurance is considered. We can provide lovely homes, reputable educations, never miss a game or recital, but if we are not protecting this life from disaster, we are walking a thin line.

It happens. We serve hundreds of families and more than a handful have experienced an untimely death. Some have had enough life insurance, and despite the emotional trauma, financial goals remained intact. Some have had just enough coverage where goals are maintained, albeit with hard work ahead. Thankfully we have never seen someone’s world completely flip upside down, but it still happens.

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YOUNG FAMILY DUAL INCOME

This group is always a pleasure. Stories, happening, milestones are being reached in almost every direction. The kids are in school, playing sports and discovering their passions. Travel coordination, meals, homework – you are the true operation managers in the world!

What would it be like if one parent was no longer there to help orchestrate the amazing feats you pull off every day? Pause. Think.

OLDER FAMILY, SINGLE INCOME

This group may have kids off to college, peak earning years, and dedicating a significant portion of income towards retirement savings. The financial plan does not work if retirement happened tomorrow if the earner passed away. The survivor’s well-being and lifestyle could be in jeopardy.

Coverage purchased when the kids were young is often set to expire before financial independence. We often look for short-term solutions to solidify a financially successful retirement no matter what.

HOW MUCH SHOULD I BUY?

A simple analysis is to use the “4% rule”. The method became popular after a 1994 paper by a financial planner, William Bengen. A 4% per year portfolio withdrawal over an extended period has a high probability of not running dry. For life insurance analysis, a family can take a wage earner’s gross income and divide by 4%. $100,000 divided by 0.04 is $2,500,000.

Our office employs a team of planners who use sophisticated financial planning software. We consider when the mortgage is paid off, how many kids are going to college, existing savings, how expenses change over time, and a variety of personal considerations to arrive at a more accurate figure.

Click here to set up a time with one of Acorn's CERTIFIED FINANCIAL PLANNERS™

HOW LONG SHOULD I HAVE IT?

A family will always have a reason to consider coverage until complete financial independence. Coverage is most vital early in our lives. Low savings, a couple of small children, a mortgage – too much is at stake. However, as we age, children become self-sufficient, savings grow, and the need for insurance typically decreases.

TERM LIFE INSURANCE

Life insurance does not have to be complex. Term insurance is effective and costs about the same as a utility bill. By applying, you are making the insurance company an offer. “I pay you this much each month and you pay my spouse this much if I pass away”. The insurance company can accept that offer and if premiums are paid, the insurance company will honor the contract.

Additionally, term life insurance is transparent and easy to compare one insurance company from another when working with an independent broker.

I pay you this much each month and you pay my spouse this much if I pass away.

BOTTOMLINE

Whichever way we look at it, life insurance is extremely important for any family serious about their financial well-being. One unfortunate accident, illness, or disease can wipe out the goals and dreams of an entire family. It is not worth saving a couple extra bucks to walk such a fine line.

Below is a life insurance quote for a 35-year-old, male, New Hampshire resident. The death benefit is $1,500,000 for 20 years and includes quoted monthly premiums from major carriers:

I am interested in the strategy and want to meet with Acorn Financial


Acorn Financial is in Nashua, NH. We are a fee-only financial planning and investment management firm. We work with successful families and businesses in the region who are committed to financial independence. Our first meeting is always free and we welcome your interest.

Here is our contact information:

Acorn Financial
Drew Hefflefinger, CFP®
400 Amherst Street, Suite 303
Nashua, NH 03063
(603) 816-3404
drew@acornnh.com
www.acornnh.com


Advisory services offered through Commonwealth Financial Network, a Registered Investment Adviser.


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