What Should You Do With “Old” Life Insurance Policies? By Lore Gordon, Managing Director -RMR Wealth Management, LLC

If someone, be it your wife, your children or your business partner, depend on you in any way that can be seen as a financial dependency, then you do need life insurance. In the case of premature death your family will need money to pay your last expenses, like outstanding bills, funeral expenses, attorney's fees, medical bills and estate taxes. The businessman will need life insurance to fund a "buy sell" agreement, to pay off outstanding debt, or may be to keep the company afloat while they find a replacement for a deceased valuable employee.

The term insurance provides protection against death of an individual for a give term period. It is one of the best policies for short-term protection of the family. There are many positive features of term life insurance policy give some kind of freedom to the insurer so that the customer feels more flexibility under the term life insurance policy.

Apart from getting quickly obtainable for consultation and doubt-clearing, an honest and professional life insurance broker ought to be capable of assess and evaluate your life cover scope that can make sure your family’s economic security wants in the current scenario at the same time as within the future, according to standard info, like age, sex, health condition, whether you have a spouse who's employed and your annual income.

For those who outlive your policy, you get absolutely nothing back from the premiums you may have paid. You do not get any revenue back at the end of the term if your policy isn’t applied. That’s what insurers are banking on. The insurance coverage provider is betting that you will outlive your policy. Any time you do, they keep the thousands (or tens of thousands) of dollars that you have paid over the 30-year period. Some individuals see that as a waste of dollars. The majority of people see it as revenue well spent for useful protection.

With 2011 drawing to a close, it’s an ideal time to review your insurance strategy with your Life Insurance Broker. The goal should be to ensure that your coverage is keeping pace with changes in your life and that you are aware of all your life insurance options.

*When you borrow against insurance you reduce the insurance benefit for which you presumably bought the insurance, leaving your family more exposed to financial risk.

We all want to buy our own homes, one that is truly ours but with this comes an expensive payment, mortgage. Mortgage payments are paid by everyone who buys their own home whether it’s their first home or their first family home, but once we are no longer here due to premature death it can often be a difficult payment to keep on top of for our families. With life insurance you can ensure that your family are provided with the money to either keep on top of or fully pay for the mortgage, meaning that your family home will still belong to your family.