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Life Insurance - Deciding What You Need & Policy Information Elkton MD

Most financial planners will say that you should have life insurance, 5 times your annual salary. Those with more dependents may need more life insurance. Other financial planners say that you should look at the total amount of income that you want to replace between now and retirement.

Roger L. Owens (RFC®), LUTCF, RHU
(410) 398-7082
104 Landing Lane
Elkton, MD
Company
RyMark Financial Services
Qualifications
Education: BS
Years of Experience: 26
Membership
IARFC, NAIFA
Services
Invoice, Portfolio Management, Pension Planning, Retirement Planning, Employee Benefits, Mutual Funds, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Group Insurance, Healthcare Accounts, BuySell

Data Provided by:
Stephen A. Jolly (RFC®), CSA
(757) 499-9100
8501 Lasalle Rd Ste 303
Towson, MD
Company
Coastal Financial Corporation
Qualifications
Education: BS
Years of Experience: 23
Membership
IARFC
Services
Invoice, Estate Planning, Business Planning, Trustee Service, Pension Planning, Executive Compensation Planning, Retirement Planning, Medicaid Planning, Tax Planning, Tax Returns, Seminars Work, Employee Benefits, Family Offices, Mortgage Loans, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Group Insurance, BuySell, Compensation Plans

Data Provided by:
Mr. Victor Simon (RFC®), CHFC, LUTCF
(410) 518-6823
605 Baltimore Annapolis Blvd
Severna Park, MD
Company
Lifetime WealthCare
Qualifications
Education: BS Degree form Slippery Rock State UniversityEd Slott IRA School Trained. Learning Institute for Executives. ChFC Designation through The American College
Years of Experience: 24
Membership
IARFC
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Pension Planning, Executive Compensation Planning, Retirement Planning, Tax Planning, Seminars Work, Employee Benefits, Family Offices, Stocks and Bonds, Mutual Funds, Mortgage Loans, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Group Insurance, Auto Home Insurance, Charitable Planning, Education Plan, Healthcare Accounts, Charitable Foundations, Asset Protection

Data Provided by:
Mr. Alan P. Stokes (RFC®), CPA
(410) 560-2667
7 Deneison St
Timonium, MD
Company
Alan P. Stokes & Assoc, Inc T/A Century Accounting & Financial Services
Qualifications
Education: Graduate of University of Baltimore, 1975, with a Bachelor's Degree in Accounting;Sat and passed CPA exam in 1982;Series 6, 63, & insurance licensed;on going required CPE education/credits
Years of Experience: 12
Membership
IARFC
Services
Invoice, Estate Planning, Business Planning, Retirement Planning, Tax Planning, Tax Returns, Employee Benefits, Mutual Funds, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, BuySell

Data Provided by:
Roger L. Owens (RFC®), LUTCF, RHU
(410) 398-7082
104 Landing Lane
Elkton, MD
Company
RyMark Financial Services
Qualifications
Education: BS
Years of Experience: 26
Membership
IARFC, NAIFA
Services
Invoice, Portfolio Management, Pension Planning, Retirement Planning, Employee Benefits, Mutual Funds, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, Group Insurance, Healthcare Accounts, BuySell

Data Provided by:
Keith Al-Chokhachy, Certified Financial Planner(tm)
2751 Centerville Road
Wilmington, DE
Company
Title: Certified Financial Planner"
Company: Morgan Stanley Smith Barney
Years Experience
Years Experience: 8
Service
Captive Insurance,Life Settlements,Pension for Highly Compensated Owners,Stock Market Alternative,Wealth Management,Health Care Insurance,Retirement Planning,Real Estate Investment Planning,Commission-Only Financial Planning (Full Disclosure),Insurance & Risk Management Planning,Retirement Income Distribution Planning,Education Funding & Financial Aid Planning,Hourly Financial Planning Engagements,Fee Only Portfolio Management,Wealth Engineering,Mortgage Refinancing,IRA, 401k, Roth IRA, QDRO Rol

Data Provided by:
DaRayl D. Davis (RFC®), CEP
(301) 316-0003
4710 Auth Place
Camp Springs, MD
Company
Financial Assurance Corporation
Qualifications
Years of Experience: 15
Membership
IARFC
Services
Invoice, Estate Planning, Pension Planning, Retirement Planning, Seminars Work, Stocks and Bonds, Mutual Funds, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Charitable Planning, Charitable Foundations, Asset Protection

Data Provided by:
Martin Smith
4800 Hampden Lane
Bethesda, MD
Company
Title: President, Wealth Management Advisor
Company: KingdomTrust Capital Management, Inc.
Education
Howard University, Bachelor of Arts
Regent School of Divinity, Candidate: M.DIV
Denver College of Financial Planning
Years Experience
Years Experience: 15
Service
High Yield Bank Accounts,IRA, 401k, Roth IRA, QDRO Rollovers,CD Alternative,Alternative Investments,Life Insurance,Investment & Portfolio Management,Long-Term Health Care Planning,Annuity Ideas & Strategy Planning,Planning For Personal Finances & Budgeting,Retirement Income Accumulation Planning,Fee-Only Comprehensive Financial Planning,401k Rollover From Employer,Income for Life/ Preserve Principal,Wealth Management,Health Care Insurance,Retirement Planning,Real Estate Investment Planning,Commi

Data Provided by:
Leon Malnik
12125 Sudbury Ct
Clarksville, MD
Company
Company: Malnik Financial Managment
Type
Investment Advisor Rep: Yes
Years Experience
Years Experience: 36
Service
Life Insurance,Investment & Portfolio Management,Long-Term Health Care Planning,Business Succession & Liquidation Planning,Retirement Income Distribution Planning,Education Funding & Financial Aid Planning,Disability Insurance,Retirement Planning,Real Estate Investment Planning,Annuity Ideas & Strategy Planning,Estate Tax Planning,Asset Protection Strategies & Planning,Annuities,Alternative Asset Class Planning,Investment Consulting & Allocation Design,Planning For Personal Finances & Budgeting,

Data Provided by:
Larry Prascus
815 Ritchie Hwy
Severna, MD
Company
Company: LB Prascus Wealth Management
Type
Registered Investor: Yes
Service
Wealth Engineering,IRA, 401k, Roth IRA, QDRO Rollovers,CD Alternative,Life Insurance,Investment & Portfolio Management,Investment Consulting & Allocation Design,Insurance & Risk Management Planning,Retirement Income Distribution Planning,Hourly Financial Planning Engagements,Portfolio Engineering,401k Rollover From Employer,Income for Life/ Preserve Principal,Alternative Investments,Retirement Planning,Long-Term Health Care Planning,Annuity Ideas & Strategy Planning,Estate Tax Planning,Asset Pro

Data Provided by:
Data Provided by:

Life Insurance - Deciding What You Need & Policy Information

Provided By: 

Life Insurance - How do I decide what I need?

This is a big question. In general, most financial planners will say that you should have life insurance equal to at least 5 times your annual salary. Some folks with more dependents (older parents, children and spouse) may need more life insurance.

Other financial planners say that you should look at the total amount of income that you want to replace between now and retirement. While the numbers can be big and scary if you are young, your actual life insurance needs will decrease over time.

Let's look at an example. If I'm 25 and make $35,000 a year and I want to replace the income I'd make between now and retirement age, I'd be looking at life insurance for $848,000. Whew! Well, there are a number of concerns with that:

  1. First and foremost, can I afford the premium?
    At this age, you may be able to. The risk to a life insurance company is low.
  2. Does my spouse work?
    If my spouse does work I may not have to replace my total salary.
  3. If I have a stay-at-home spouse, would they consider going back to work after a certain period?
    If you think your spouse may want to retrain for another career you may actually need to consider more money. Or perhaps, if the total amount of the life insurance policy paid out the mortgage and put some money in the bank, your spouse could return to the workforce on a part-time basis.
  4. Am I trying to leave my family 'set for life' or am I trying to get them over a tough time?
    This is entirely up to you. Balance it out against the amount of the life insurance premium.
  5. Is it overkill?
    (Excuse the pun.)

These are questions which must be considered. At a minimum, your life insurance coverage should:

  • Fully pay out your mortgage
  • Fully pay for funeral costs
  • Allow for supplementary childcare for at least 2 years (if you have children)
  • Fully pay out any other debts, like car loans, outstanding bills from credit cards or utilities, etc
  • Leave a little something in the bank for emergencies

Does 5 times your salary meet these requirements? Great. If not, you might have to consider up to 8 times your salary. Then consider all the factors which might affect your spouse's ability to handle the situation - perhaps you've died in an accident in which they were hurt too, or perhaps you have a family of 9 children and your spouse couldn't return to work - and add additional money as required.

What about college for the kids?

...

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