Without life insurance, an early death can pressure your family to sell your home and other assets, dip into retirement funds, relocate to a new area, and/or potentially force your children into a new school district.
Proper life insurance can help ensure that your family can continue their same way of life, even after you have passed. But life insurance can have many other incredible benefits that can be accessed while you're living.
When set up correctly, a well-positioned life insurance policy will:
• Financially protect your family and their way of life
• Help supplement your retirement
• Fund for a possible early retirement
• Protect your family from State/Federal estate taxes
• Reduce your taxable income
• Help with your child's college funding
• Solidify your legacy
• Business Owners Take Note
In addition to the benefits above, successful business owners life insurance as an incentive to protect and retain key employees.
3 Variations of Life Insurance
*Most life insurance death benefit guarantees and cash value guarantees are based on the fact that regular premium payments are being made by the insured and/or owner of the policy. ** A fourth variation of life insurance exists called Variable Life Insurance, but MAZ Income Planning Services does not work with this option.
Term Life
Insurance
Term Life Insurance gives you coverage for a certain amount of time, or term. Commonly, the term lengths are 10, 20, or 30 years. During this time, insurance companies guarantee your premium DO NOT change for the specific term length you elected.
Use our partnership with Ethos to get a quote and apply within 10-15 minutes. Get approved same day.
Permanent Life
Insurance
Permanent Insurance gives you coverage for your entire life. This guarantees that your beneficiary (a person, a place, or a charity) will receive a financial benefit at the time of your passing.
This financial benefit can be used by your surviving family to pay estate taxes, fund your family's will/trust, and continue your legacy.
Indexed Universal Life Insurance
Indexed Universal Life insurance is a unique form of permanent life insurance.
Along with a guaranteed death benefit, the cash value inside your policy is automatically linked to the positive performances of a specific index (like the S&P 500). At the same time, your cash value is automatically protected from losses due to negative returns from that same index.
Determining Your Amount of Life Insurance Coverage
Putting aside life insurance dedicated for business owners, key employees, and charities, your personal life insurance amount should be calculated by different variables depending on your current situation. Below are examples for a One-Working Parent and Two-Working Parent Families:
One Working Parent
7-10x Annual Salary
+
Mortgage Balance
+
Other Debt
Credit Cards, Student Loans, Business Loans, etc
= Total
Example: One Working Parent
James and Mary are married but only James works full time. They have two sons and one daughter ages 4, 7, and 9. In addition to the calculation above, they want their children to go to college and hope to provide $150,000 each for expenses. James make $200,000/year. Mary is a stay-at-home parent. They have a mortgage with a balance of $475,000. They both have no additional debt.
Category
JAMES
Annual Salary
Mort. Balance
Other Debt
College Costs
TOTAL
Base
JAMES
$200,000
$475,000
$0.00
$150,000
Multiplier
JAMES
10x
N/A
N/A
3x (3 children)
Total
JAMES
$2,000,000
$475,000
$0.00
$450,000
$2,925,000
Category
MARY
Annual Salary
Mort. Balance
Other Debt
College Costs
TOTAL
Base
MARY
$0.00
$475,000
$0.00
$150,000
Multiplier
MARY
N/A
N/A
N/A
3x (3 children)
Total
MARY
$0.00
$475,000
$0.00
$450,000
$925,000
Two Working Parents
5 x Annual Salary
+
Mortgage Balance
+
Other Debt
Credit Cards, Student Loans, Business Loans, etc
= Total
Example: Two Working Parents
John and Jane both work full-time and have two daughters who are ages 8 and 12. John makes $75,000/year while Jane makes $50,000/year. They want their daughters to go to college but do not plan on paying for those costs. They have a mortgage with a balance of $250,000. John has another $30,000 in a car loan. Jane has no other debt.
Category
JOHN
Annual Salary
Mort. Balance
Other Debt
College Costs
TOTAL
Base
JOHN
$75,00
$250,000
$30.00
$50,000
Multiplier
JOHN
5x
N/A
N/A
2x (2 children)
Total
JOHN
$375,000
$250,000
$30,000
$100,000
$755,000
Category
JANE
Annual Salary
Mort. Balance
Other Debt
College Costs
TOTAL
Base
JANE
$50,000
$250,000
$0.00
$50,000
Multiplier
JANE
5x
N/A
N/A
2x (2 children)
Total
JANE
$250,000
$250,000
$0.00
$100,000
$600,000
Life Insurance Quote: Frequently Asked Questions
Is the life quoter free to use?
Yes. Life Quoter is unlimited to use and is always free.
Am I obligated to sign up for anything?
No.
I am ready to apply. Now what?
I am ready to apply. Now what?
What information is collected for quotes?
No personal information is needed to use the life quoter.
After using Life Quoter, I see a lot of options. Can I condense them into something easier to read?
Yes. In the upper left corner, click on the "Spreadsheet" button.
I have questions, how can I contact MAZ IPS?
Contact Info is listed at the bottom of the page, or go to our contact page.
I like both Term and Universal Life. Can I get two policies.
Yes. Combination policy designs are very common. Someone might want $500,000 in coverage, and will get a $400,000 30 Year Term Life policy along with a $100,000 Universal Life policy.
There are a lot of different types of life insurance to choose from, what are some of the more popular choices?
For Term Life, 20 Year and 30 Year are very popular. For Whole Life/Universal Life, the To Age 121 Level - Pay to 100 is fairly common. But please reach out to a designated agent, and they can help you narrow down what type of policy, or policies, would best fit your needs.