insured REST
Protecting your business
and yourself
By Michael c.
Roy, MAI, SRA,
chair, Real Estate
Appraisers Group
Insurance Trust
Board of Directors
FAMILY PLANNING
When, why and how you should
evaluate your life insurance coverage
WHEN YOU WANT THE BEST FINANCIAL
PROTECTION FOR YOUR FAMILY, you need
life insurance coverage that works for you. How
do you decide when it’s the right time to purchase life insurance, and what factors should you
consider when planning for coverage? There are
certain life events that may trigger a need for life
insurance or simply present you with a reason to
evaluate your life insurance needs.
way, in the future, your family is
protected if anything happens
to you. Even if you have to start
small, it’s important to start
something. Keep this in mind especially if others
depend on you, such as aging parents.
WHEN TO CONSIDER LIFE INSURANCE
To help protect loved ones from debt and help
them realize their financial goals, you need to
plan for uncertainty. Here are examples of life
stages that are often pivotal times for evaluating
your life insurance needs. Please note that while
these do not cover all necessary circumstances,
they may be used as a starting point for a life
insurance needs assessment.
Marriage: Now that you’ve taken the ultimate
relationship plunge, you’ll want to provide for your
loved ones (spouse, children and aging parents) in
the event something happens to you — especially
if you’re the primary source of income. However,
even if you’re like most couples and your lifestyle
is dependent on both of your incomes, it’s wise to
consider life insurance, as your spouse’s current
standard of living — not to mention loan, mortgage, credit card and other debt payments — may
suffer without two paychecks.
Single (young or mature): Even if you’re
on a budget or just starting out on your own, life
insurance may be more affordable than you real-
ize. While you’re still young, your life expectancy
is higher and therefore the cost of life insurance
tends to be less. After your basic expenses are
covered and before you begin investing, you
should consider building a personal safety net of
life-, health- and disability-insurance income. This
If you have life insurance in place, it can help
finance big-ticket expenses such as your child’s
college tuition or spouse’s retirement after you’re
gone. Be sure all your avenues are covered — if
you have life insurance through work, you may
still need additional coverage for your new family.
Life insurance is a traditional way to help protect
what you have and ensure your surviving spouse
is taken care of in the event of a tragedy. Consider
life insurance to help your surviving spouse avoid
financial burdens, such as funeral costs, outstand-
ing debt, estate taxes and normal living expenses,
when he or she is already dealing with your loss.
Raising children: Beginning a family is one
of the most important events in your life; it’s also
when it truly hits home that others depend on you,
so evaluating life insurance becomes even more
crucial. With life insurance, you can help provide for
your family even after you’re gone — and, if need
be, get them back on track toward financial security.
Life insurance money can help ease a surviving
spouse’s financial burdens (which can be greater
when there’s a funeral cost to cover), offset his
or her outstanding debt (college, auto, mortgage,
credit cards), and cover his or her child care and
living expenses. Help keep your family from having
to move from where they’re most comfortable if
something happens to you, and prevent them from
having to make an important decision about selling
their home and buying another or moving under
emotional distress.
