Q.  Robert, when you work with your clients do you have any kind of formula as to how much life insurance coverage they should have?  – Tim in High Point

A.  Tim, over the years I have seen several types of guidelines for determining how much life insurance someone should have.  We do not do this at our office.  Everybody’s situation is different.  If we incorporate a life insurance program into our client’s portfolio, it is done for a reason (Estate tax, Estate planning issues, etc.).  The timing of your question is good as I just completed a life insurance policy review with a client last week.  Let me give you an idea of how we do this.

Our typical life insurance policy review will go much deeper than merely analyzing the death benefit of your existing coverage.  We look at your current financial situation, recent life changes, changes in your health, as well as new trends in life insurance products.

Special attention will be given to these particular aspects of your current policy:

Annual Premium – How much are you paying?  Is it still in your budget?  Can you possibly lower your premiums for the same amount of coverage?

Death Benefit – Does your current policy still provide you with the coverage your family needs?

Beneficiary Designations – Do you need to update your beneficiaries?

Supplementary Benefits – Do you have unnecessary riders on your policy?  Are there new options that may benefit you such as Long Term Care riders?

Policy Ownership – Is the policy ownership structure tax efficient and does it still make sense?

Policy Performance – Is there a better option to help improve the policy’s performance and build cash value?

Keep the questions coming at rdcooper@globalfinancialpc.com.

If you would like a complimentary consultation with Robert, call the office at 993-2012.

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Robert Cooper, CRPC, RFC 

Investment Advisor Representative

Providing Financial Planning Services in the Triad for Over 20 Years

336-993-2012  •  www.coopercares.com  

935-E Mountain St., Kernersville, NC 27284

Investment Advisory Services Offered Through Global Financial  Private Capital, LLC, an SEC Registered Investment Advisor.

If you would like a complimentary consultation with Robert, call the office at 993-2012.

Robert Cooper and Global Financial Private Capital, LLC do not provide tax or legal advice.  Individuals should seek advice from their own tax or legal counsel for their particular situation.

Any comments regarding safe and secure investments and guaranteed streams refer only to fixed insurance products. They do not refer, in any way to securities or investment advisory products. Insurance and Annuity product guarantees are subject to the claims paying ability of the issuing company, and are not offered by Global Financial Private Capital.